What is PAYE? And How to File
PAYE stands for “Pay as You Earn” it applies to individuals earning 24,000 per month in salaries, benefits, and allowances. Filing and submitting PAYE returns must be done by the 9th day of the following month, this must be done every month.
The recently introduced simplified PAYE Excel is a summarized version (between 3–5 sheets) replacing the old, detailed Excel that contained multiple sheets. The old version had many sheets, the simplified version typically has only three sheets. However, if using fringe or gratuity benefits, it may have five sheets.
Accessing the System
The simplified PAYE tools can be accessed on the Kenya Revenue Authority website under publications. Users can search for “simplified PAYE” to find the CSV and Excel files, which provide the necessary structure and guidance for data input.
Penalties
Failure to file results in a monthly penalty of KES 10,000 for companies and KES 2000 for individuals. The late payment penalty is 5% of the tax due, with an interest charge of 1% per month.
Follow the step-by-step guide below to complete your simplified PAYE Return accurately.
Check out our KRA PAYE Calculator based on the latest 2026 tax rates in Kenya
Disclaimer: Any advice in this publication is limited to the conclusions specifically set forth herein and is based on the completeness and accuracy of the stated facts, assumptions and/or representations included. In rendering our advice, we may consider legal authorities that are subject to change, retroactively and/or prospectively, and any such changes could affect the validity of our advice. We will not update our advice for subsequent changes or modifications to the law and regulations, or to the judicial and administrative interpretations thereof.
