The Kenya Revenue Authority (KRA) has announced the introduction of a major shift in how employers file their monthly tax returns by launching a simplified system for Pay As You Earn (PAYE).
The revamped platform is expected to significantly ease the administrative burden of filing taxes, particularly for organisations that deal with multiple payroll deductions.
The announcement comes at a time when employers across sectors have been pushing for reforms to reduce paperwork, minimise filing errors, and align payroll compliance with emerging technologies.
According to KRA, the new system, which will be on the rollout effective July 1, has been introduced following feedback from taxpayers.
The taxman further announced that the simplified PAYE tax return filing will be rolled out in a bid to simplify the tax filing process.
The new system will also integrate with the Government Human Resource Information System (GHRIS), IFMIS, and the Central Bank of Kenya (CBK) through API connections to enable seamless filing and payment of PAYE, the Affordable Housing Levy, NITA Levy, and other labour-related deductions and contributions.
''The simplified process facilitates employers' filing returns relevant to their categories of employees. It also integrates with the government human resource information system, IFMIS and CBK through API integration for seamless filing and payment of PAYE, Affordable Housing Levy, NITA Levy, and other labour-related deductions and contributions,''KRA stated.
Further, the simplified PAYE return aims to improve the user experience for all, including the public, not-for-profit, and private sectors.
How to Use the System
To use the simplified PAYE filing system, employers will need to download a specially formatted Excel file known as the Simplified Excel PAYE Return from the KRA website. Alongside this, KRA provides sample CSV files that demonstrate how payroll data should be structured. These files are designed to guide employers in preparing accurate and compliant returns based on the updated format.
Once the employer fills out the Excel form with relevant payroll information—such as employee earnings, PAYE, Affordable Housing Levy, NITA Levy, and other statutory deductions—they can upload the file to the iTax system.
The new platform will automatically validate the entries, helping to eliminate manual errors and reduce back-and-forth corrections that have often plagued the previous system.
For government agencies and larger institutions, the system will offer API integrations with platforms like GHRIS, IFMIS, and CBK. This allows for seamless data exchange and real-time filing and payment of deductions.
