Payroll taxes in Kenya are collected through the Pay-As-You-Earn (PAYE) system, where employers deduct income tax from employees’ earnings. PAYE applies to salaries, wages, bonuses, commissions, and taxable non-cash benefits.

Key Employer Responsibilities

• Monthly Deductions: Employers must deduct PAYE from employees’ earnings and remit it to the Kenya Revenue Authority (KRA).
• Payment Deadline: PAYE must be paid by the 9th of the following month.
• Filing Requirements: Employers must submit a monthly PAYE return (Form P10) via iTax, KRA’s electronic filing system.

PAYE rates follow the individual income tax brackets, as outlined in Kenya’s personal income tax summary