Juggling running a business, managing your payroll, and preparing and filing PAYE returns is not an easy feat. This is especially true for small and medium-sized enterprises (SMEs) without an in-house accountant.
PAYE filing is an obligation placed on all employers in Kenya. It’s your duty to calculate the applicable PAYE for all your employees, deduct the amount from their earnings, prepare a monthly tax return, file it via iTax, and remit the due tax to the Kenya Revenue Authority (KRA) before the 9th of the following month. When you factor in running your business and dealing with stakeholders like suppliers, distributors, and clients, and managing employees, all that can become overwhelming.
The good news is that you don’t have to do it all alone. Our PAYE filing services take care of the preparation, filing, and any other related compliance requirements on your behalf. If you want to stay on the good side of KRA, prepare your PAYE return on time, and still run your business smoothly, we are here to assist. Let’s handle the taxes for you so that you can focus on running your business.
PAYE Preparation & Filing Services for Employers in Kenya
PAYE preparation requires attention to detail and accuracy. It’s one of those Kenyan taxes that give employers headaches. First, Kenyan PAYE tax laws are constantly changing. For instance, statutory deductions like the National Social Security Fund (NSSF), Social Health Insurance Fund (SHIF), and the Affordable Housing Levy must be calculated using the provided rates for each employee. It becomes even harder when your employees have significant differences in salary and deductible allowances.
Secondly, PAYE is a progressive tax rather than a flat tax. The multi-tier system ranges from 10% for low earners to 35% for high earners. It’s your duty as a Kenyan employer to familiarize yourself with this system and use it accurately to avoid compliance mishaps. Lastly, navigating the PAYE section on iTax may present technical hitches, including downtimes, system errors, downtimes, and validation errors.
We have worked with Kenyan employers over the years, which has helped us master the ins and outs of PAYE filing. We also keep tabs on all the changes happening in the Kenyan tax scene. Our PAYE preparation and filing services are designed with you in mind to help lift the burden off your shoulders. Whether you are a startup, a small business filing PAYE for the first time, or an existing company looking for a more convenient way to manage recurring PAYE obligations, our team of tax experts is here to help.
What’s Included in Our PAYE Preparation & Filing Services
Most employers aren’t looking for someone to log in to iTax and submit the PAYE returns on their behalf. Instead, they want a professional who can streamline their payroll data, prepare tax returns, file on their behalf, and provide helpful tax advice. Here’s what our PAYE preparation and filing services entail:
Reviewing Payroll Data
Our tax experts carefully review your payroll information before preparing the tax returns. This ensures mathematical accuracy and detects errors, which prevents costly compliance issues.
Preparing the Tax Return
Preparing your PAYE returns is a high-stakes process. Our process includes:
- Reviewing the basic salaries, allowances, and other earnings for each employee.
- Compiling statutory and allowable deductions like NSSF, SHIF, and Affordable Housing Levy, and personal reliefs.
- Calculating due taxes using the latest PAYE rates.
Filing Returns on iTax
We submit the prepared returns through the KRA iTax platform. You don’t have to lift a finger; just wait and let the professionals handle it.
Confirmation and Approval
Once we have prepared and successfully filed your PAYE returns, we provide confirmation for the submitted returns, including KRA’s Acknowledgement receipts. You can then approve the data and remit the owed tax to KRA.
Bonus
Besides preparation and filing, we help identify potential issues such as inconsistencies and missing information. This needs to be addressed before filing to avoid compliance issues and penalties. If you have outstanding PAYE returns or other compliance issues, share your problem with us. We can assess it, identify key issues, and advise on the most appropriate way forward.
How Our PAYE Filing Service Works
Our process is straightforward. Here’s how it works:
1. Provide Payroll Data
To get started, we request that you provide your payroll information and relevant documentation for review.
2. Review Data and Prepare Tax Returns
Based on the provided data, we prepare accurate tax returns.
3. Filing Returns Via iTax
PAYE returns in Kenya are submitted online via iTax. Once we’ve prepared and double-checked the returns, we submit them to KRA on your behalf.
4. Confirmation
We provide confirmation of the filing, including KRA’s acknowledgement receipts and other relevant information regarding the PAYE return.
Benefits of Outsourcing Your PAYE Filing
Can you file PAYE returns yourself as an employer? Yes, you can. That’s why we have a detailed guide on how to file PAYE returns in Kenya. Yet, outsourcing your PAYE filing to a professional has so many benefits. These benefits include:
- Saves Time: Preparing PAYE returns is time-consuming. Navigating the iTax platform also takes a considerable amount of time. When you outsource, you save time, leaving you with adequate time to run and manage your business.
- Reduces Filing Errors: Professionals have no other business than to deliver value for your money. They will review your data carefully, detect inconsistencies early, and offer expert advice that reduces filing errors. This helps you avoid compliance issues.
- Reduces Compliance Risk: With proper preparation and timely filing of returns, you avoid unnecessary compliance problems.
- Stay on top of Filing Deadlines: An employer’s life moves fast, between reviewing how the company or business is doing, managing employees, and work-life balance. Having a dedicated professional who handles your tax returns helps keep track of tax obligations and stay on top of KRA deadlines.
- More Focus on Business: With one less administrative obligation to worry about, you can focus on the core aspects of running your business, organization, or company.
Who We Serve: Who Should Use Our PAYE Preparation & Filing Services
The target of our PAYE filing services includes:
- Any business employing staff for the first time with no knowledge of navigating the PAYE tax regime.
- SMEs and startups without an in-house payroll manager or accountant.
- Employers unfamiliar with the iTax platform.
- Any employer who finds monthly PAYE filing time-consuming.
- Businesses with multiple employees with varying salaries and allowances.
- Businesses with outstanding PAYE returns.
- Employers who prefer professional tax compliance support.
Outsourcing PAYE preparation and filing is not about being stuck. It’s about convenience, accuracy, and freeing up your time to focus on more important business aspects.
PAYE Filing Deadline in Kenya and Consequences
In Kenya, PAYE returns are filed every other month. This is mandatory; failure to which there are serious consequences, including penalties and interest. The filing deadline is the 9th of the following month. For instance, the deadline to file January 2026 PAYE returns is 9th February, 2026. Failure to honor this deadline has dire consequences, including:
- Late filing penalty of 25% of the tax due or Ksh 10,000 per month.
- Late payment penalty of 5% of the tax due.
- Compounding interest of 1% per month on any unpaid tax.
- Loss of Tax Compliance Certificate (TCC).
- Might trigger KRA audits and enforcement.
- Legal liability.
As such, it’s important for Kenyan employers to have a reliable tax professional or system for preparing and filing PAYE returns every month.
Get Professional Help with PAYE Preparation and Filing
Do you need expert help with the monthly PAYE filing process? It doesn’t matter if you are new to the PAYE tax scene, need someone to take the administrative burden off your shoulders, or need a reliable system that prepares and files your taxes on time every month.
At Gichuri & Partners, it’s what we do best. We handle tax matters for you so that you can focus on growing your business. Our PAYE filing services are top-rated in Kenya. Let us help you stay on top of your PAYE obligations through accurate and timely tax returns. Contact us for reliable PAYE preparation and filing assistance.
