Are you a business owner or HR professional trying to make sense of PAYE Kenya regulations? You’re not alone. Many employers struggle with PAYE compliance, leading to penalties, confusion, and unnecessary stress. Let’s break it down in a simple, precise, and interactive way.
What is PAYE Kenya
PAYE (Pay As You Earn) is a system used by the Kenya Revenue Authority (KRA) to collect income tax directly from employees’ salaries. Employers are required to calculate, deduct, and remit this tax every month on behalf of their employees. If you're running payroll in Kenya, understanding PAYE isn’t optional — it’s the law.
PAYE Tax Bands in Kenya (2024)
Effective July 2023, here are the current PAYE bands:
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KES 0 – 24,000 → 10%
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KES 24,001 – 32,333 → 25%
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KES 32,334 – 500,000 → 30%
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KES 500,001 and above → 35%
These bands are applied progressively — meaning higher income portions are taxed at higher rates.
PAYE Filing & Deadline
Employers must:
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Calculate the correct PAYE based on salary and tax bands
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Remit deductions through the KRA iTax portal
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Submit by the 9th of the following month
Late remittance can cost you 25% of the tax due or a minimum penalty.
Let’s Test Your Knowledge
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True or False — You can remit PAYE whenever it’s convenient
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Fill in the blank — The first KES 24,000 is taxed at ___%
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Scenario — If you earn KES 30,000 monthly, which tax bands apply
Post your answers in the comments or email us — we’d love to hear from you.
Need Help With PAYE Kenya
Managing PAYE doesn't have to be hard. At FaidiHR, we simplify payroll and tax compliance with automation you can trust. Let us handle the numbers while you focus on growing your business.
Email: sales@faidihr.com
Phone: +(254) 702 339 699
Let’s make payroll easy for your business — starting today.