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What KRA’s new tax filling system means for salaried Kenyans

Salaried Kenyans could skip annual returns as KRA moves to automate PAYE on iTax.
Kenya Revenue Authority (KRA) Commissioner General Humphrey Wattanga during a press conference
Kenya Revenue Authority (KRA) Commissioner General Humphrey Wattanga during a press conference

Salaried workers in Kenya will no longer need to manually file their annual income tax returns after the Kenya Revenue Authority (KRA) moved to automate the process using data flowing directly from employers’ payroll systems into iTax.

KRA is conducting a systems integration that will allow it to automatically pre-fill and process PAYE returns, eliminating the need for workers to upload forms or enter figures themselves.

The move builds on KRA’s ongoing tech rollout. In June, the agency announced iTax enhancements to let employers file and pay directly from payroll or ERP via APIs, and confirmed a nationwide shift to a simplified Excel PAYE return for employers from July 1, 2025. 

A person using KRA app

A person using KRA app

What still changes (and what doesn’t)

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KRA documentation has, until now, required every PIN holder to submit an annual return by June 30, with pre-populated options available for “employment-only” cases.

However, taxpayers with additional income streams (e.g., rental, business, consulting) will still need to file normally and declare any withholding tax and other income.

A KRA staff member working on a computer

A KRA staff member working on a computer

KRA has also been implementing Finance Bill 2025 changes around PAYE computation and automatic application of eligible reliefs by employers, suggesting a broader trend toward end-to-end automation for employment income.

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