Clock ticking for employers: KRA issues urgency warning on PAYE deadline

The Kenya Revenue Authority (KRA) has issued a reminder to employers across the country, urging them to submit their monthly Pay As You Earn (PAYE) returns and settle their corresponding tax liabilities before the deadline on Friday, October 9, 2026.

In a public notice released on Monday, October 5, the tax collector advised business owners and payroll administrators to fulfill their tax obligations well in advance.

The prompt reminder aims to help employers avoid the inevitable system congestion and technical glitches that often occur on or near the due date.

The reminder comes at a crucial time, as several employers have recently reported technical hurdles while attempting to submit their previous PAYE returns.

Taxpayers have voiced concerns regarding difficulties accessing specific online services on the KRA portal, seeking clarity on when full portal functionality will be restored.

Acknowledging these operational disruptions, KRA stated that technical teams are actively working to rectify the issues to ensure a smooth filing experience. The authority responded to user complaints by encouraging taxpayers to remain patient while engineers complete the necessary system updates and enhancements.

“Hi, kindly be patient as we are working to resolve the issue,” KRA said in response to taxpayers who reported difficulties filing their returns.

Because filing activity typically surges during the final hours before a cutoff, submitting returns early provides employers with a safety buffer to troubleshoot any unexpected technical issues.

Under Kenyan tax regulations, PAYE is a statutory deduction made by employers from employees' salaries and wages. The employer acts as an agent responsible for remitting these deductions to the revenue authority on a monthly basis.

Failing to submit returns or pay the collected taxes by the statutory deadline attracts mandatory penalties and accrued interest, making timely compliance essential for maintaining operational continuity and avoiding financial sanctions.

The October 9 PAYE deadline coincides with ongoing initiatives by KRA to ease tax payment burdens and streamline compliance for businesses nationwide.

On October 4, the revenue authority announced updated guidelines regarding the tax amnesty program, offering relief to eligible taxpayers seeking to settle outstanding historical liabilities.

Under the updated framework, taxpayers eligible for tax amnesty can clear their principal tax liabilities in flexible installments. To qualify for total waiver of accrued penalties and interest, taxpayers must ensure their principal balances are fully settled by December 31, 2026.

However, KRA clarified that this flexible installment arrangement applies strictly to historical principal liabilities under the tax amnesty program. It does not alter or extend the statutory deadlines for monthly obligations like PAYE.

Consequently, employers must handle their current October 9 PAYE submissions and payments separately from any ongoing amnesty repayment plans.

To ensure full compliance and avoid extra costs, employers should keep the following actionable steps in mind:

File early: Prepare and upload payroll data as soon as possible on the iTax portal to prevent last-minute delays or portal slowdowns.

Verify deductions: Ensure all PAYE calculations accurately reflect the correct salary bands, tax reliefs, and statutory statutory rates.

Confirm payment processing: Monitor bank transfers or mobile payment channels to confirm that payments are processed before the October 9 deadline.

Separate amnesty accounts: Distinguish between routine monthly PAYE payments and historical amnesty installment payments to maintain clean tax records.