How to file PAYE on iTax

## What is PAYE?

PAYE (Pay As You Earn) is income tax deducted from employee salaries by employers and remitted to KRA. If you are employed, your employer handles this. If you employ staff, you are responsible for deducting and remitting PAYE.

Filing deadline: 9th of every month (for the previous month's payroll).

PAYE bands (2024/25)

Personal relief: KES 2,400/month — always deducted from PAYE before remitting.

Other statutory deductions (2024/25)

SHIF (Social Health Insurance Fund): 2.75% of gross salary — replaced NHIF from October 2024

NSSF (3rd schedule): 6% of gross, capped at KES 1,080/month

Affordable Housing Levy: 1.5% employee + 1.5% employer of gross salary

Filing PAYE on iTax

Step 1: Log in to iTax

Go to itax.kra.go.ke and log in with your PIN and password.

Step 2: Navigate to Returns

Click Returns > File Return > PAYE.

Step 3: Select the return period

Choose the month and year you are filing for (e.g., "December 2024").

Step 4: Download the PAYE template

Click "Download Return Template". This downloads an Excel file (.xlsx) that you fill in with your payroll data.

Step 5: Fill in the template

For each employee, enter:

KRA PIN

Full name

Gross salary

PAYE deducted

SHIF contribution

NSSF contribution

Housing Levy contribution

Other deductions

Save the file after filling it in.

Step 6: Upload the template

Back in iTax, click "Upload Return" and select the completed file.

Step 7: Confirm and submit

Review the summary and click "Submit Return". You will receive a confirmation email with an e-slip.

Step 8: Make payment

Pay the PAYE amount using M-Pesa Pay Bill (KRA Paybill: 572572) or bank transfer. Use the payment reference from the e-slip.

Late filing penalties

Fixed penalty: KES 2,000/month

Interest on unpaid tax: 2% per month

File on time — the penalty starts accumulating immediately after the 9th.