This article highlights the new PAYE tax rates in Kenya that were announced in April 2020. Pay As You Earn (PAYE) is a mandatory tax levied on all employees’ income by the Kenya Revenue Authority. All employers are required by the law to deduct PAYE from employees’ salaries and wages at the prevailing rates and remit the same to KRA on or before the 9th of the following month.
PAYE is chargeable to persons of employment income of Kshs. 24,000 and above per month. PAYE returns are submitted online via iTax . If you have no PAYE to declare, you are required to submit a NIL return.
Below are the new PAYE tax rates that were last updated on 25th April 2020.
|Monthly Taxable Pay (Ksh)||Annual Taxable Pay (Ksh)||Rate of Tax (%)|
|Up to 24,000||Up to 288,000||10|
|24,001 – 40,667||288,001 – 488,000||15|
|40,668 – 57,333||488,001 – 688,000||20|
|Above 57,333||Above 688,000||25|
If you have any questions, don’t hesitate to contact KRA using the avenues below.
Kenya Revenue Authority contacts
Phone: +254 20 281 0000
Address: Times Tower Building Haile Selassie Avenue
Check out :How To Pay KRA Penalties Via Mpesa 2020