Finance

How to File PAYE Returns in Kenya on iTax: 2026 Guide

K By Kev 10 June 2026 11 min read
Share
Finance guide

To file PAYE returns in Kenya, an employer logs in to iTax, completes the PAYE (P10) return declaring each employee's pay and the tax deducted, submits it, and pays by the 9th of the following month. Any business with employees must operate PAYE and file monthly. This guide walks through preparing and filing the P10 on iTax, what to include, and how automated payroll makes the figures correct and on time.

Key takeaways
  • File the monthly PAYE (P10) on iTax and pay by the 9th
  • PAYE is the tax after the KES 2,400 personal relief, per the KRA bands
  • SHIF, NSSF and the Housing Levy are remitted separately to their own bodies
  • Veira payroll produces correct P10 figures automatically
On this page
  1. What a PAYE return is and who files it
  2. How to file PAYE (P10) on iTax, step by step
  3. Common PAYE filing mistakes
  4. An employer files PAYE in minutes
  5. How Veira automates PAYE for filing
  6. Frequently asked questions

What a PAYE return is and who files it

PAYE (Pay As You Earn) is the income tax an employer deducts from employees' salaries and remits to KRA. The PAYE return (the P10) declares, for each employee, their gross pay, the deductions, and the tax withheld for the month. Every employer with staff on a payroll must file it.

PAYE is due by the 9th of the following month, both the return and the payment. The figures come from your payroll: PAYE calculated on the KRA bands less personal relief, alongside the other statutory deductions you also remit (SHIF, NSSF, Housing Levy), though those go to their own bodies.

Accurate payroll is the foundation. If your PAYE was calculated correctly for each employee, the P10 is a straightforward declaration of those figures.

How to file PAYE (P10) on iTax, step by step

Follow these steps each month by the 9th.

  1. 1

    Step 1: Prepare your payroll figures

    Have each employee's gross pay, PAYE (after the KES 2,400 personal relief), and other deductions ready. Accurate payroll software produces these automatically.

  2. 2

    Step 2: Log in and open the PAYE return

    Log in to itax.kra.go.ke, go to Returns, File Return, and select the PAYE (income tax PAYE) obligation and the month.

  3. 3

    Step 3: Complete the P10 template

    Download the P10 Excel template, enter each employee's details and PAYE, and any other required information. The template validates your entries.

  4. 4

    Step 4: Upload and submit

    Generate the upload file from the validated template and submit it on iTax. Keep the acknowledgement receipt.

  5. 5

    Step 5: Generate the e-slip and pay

    Generate the payment slip for the PAYE due and pay by M-Pesa, bank or agent before the 9th.

  6. 6

    Step 6: Remit other deductions

    Remit SHIF, NSSF and the Housing Levy to their respective bodies by their deadlines too. These are separate from the iTax PAYE payment.

Common PAYE filing mistakes

Forgetting personal relief

Filing PAYE without subtracting the KES 2,400 monthly personal relief over-deducts every employee. Apply the relief before declaring PAYE.

Missing the 9th

PAYE return and payment are due by the 9th of the following month. Late filing attracts a penalty (commonly 25% of the tax due or KES 10,000, whichever is higher) plus interest.

Mixing up the statutory bodies

PAYE goes to KRA via iTax; SHIF, NSSF and the Housing Levy go to their own bodies. Paying the right amount to the right body on time matters.

Manual calculation errors

Hand-calculating PAYE for several staff invites mistakes. Automated payroll applies the bands and relief correctly every time.

Not filing in a no-pay month

If you had employees but a particular month had no pay run, confirm your filing obligation; do not simply skip the return.

An employer files PAYE in minutes

Worked example

A restaurant in Nairobi with five staff worked out PAYE by hand each month and twice over-deducted because the personal relief was forgotten. Filing the P10 was a monthly scramble.

With automated payroll, each employee's PAYE was calculated correctly after relief, and the P10 figures were ready. The owner uploaded the template to iTax, submitted, and paid by the 9th.

Filing dropped to minutes, the figures were correct, and the other statutory deductions were remitted on time too. Payroll compliance stopped being a monthly worry.

Business impact

Trading without eTIMS-compliant tax invoices risks KRA penalties, blocked VAT input claims for your customers, and receipts a business buyer cannot expense.

Veira signs every sale to KRA eTIMS automatically, so each receipt is compliant the moment it prints, with no separate device to reconcile.

How Veira automates PAYE for filing

Veira's payroll calculates PAYE (on the KRA bands, after the KES 2,400 relief), plus SHIF, NSSF and the Housing Levy, for every employee automatically each cycle. The figures you need for the P10 are produced correctly and consistently, so filing on iTax is a quick, accurate step.

Because payroll runs in the same system that handles your sales and eTIMS, your whole compliance picture is consistent and audit-ready, from KES 2,999 a month.

Frequently asked questions

How do I file PAYE returns in Kenya?
Log in to iTax, select the PAYE (P10) return for the month, complete the P10 template with each employee's pay and PAYE, upload and submit, then generate the e-slip and pay by the 9th. Remit SHIF, NSSF and the Housing Levy to their own bodies separately.
When is PAYE due in Kenya?
The PAYE return and payment are due by the 9th of the following month. Late filing attracts a penalty (commonly 25% of the tax due or KES 10,000, whichever is higher) plus interest, so file and pay before the 9th.
What is the P10?
The P10 is the monthly PAYE return template on iTax where an employer declares each employee's gross pay, deductions and the PAYE withheld. You complete it, upload it to iTax, and pay the PAYE due by the 9th.
Do I subtract personal relief when filing PAYE?
Yes. PAYE is the tax after subtracting the KES 2,400 monthly personal relief from the gross tax on the KRA bands. Filing without applying the relief over-deducts every employee, a common and costly error.
Are SHIF, NSSF and the Housing Levy part of the PAYE return?
No. PAYE is filed and paid to KRA via iTax. SHIF, NSSF and the Affordable Housing Levy are remitted to their respective bodies by their own deadlines. They are part of payroll but separate from the iTax PAYE payment.
Can payroll software file PAYE for me?
Payroll software like Veira calculates PAYE and the other deductions correctly and produces the figures you need for the P10, making the iTax filing quick and accurate. You still submit on iTax, but the hard part, the correct figures, is done for you.

PAYE filing is simple when payroll is right: correct PAYE after relief, ready for the P10, paid by the 9th. Veira automates the calculation for every employee so filing is a quick, accurate step, from KES 2,999 a month. Book a free demo and run payroll with confidence.

Terms explained

Keep reading

See all Finance guides

Veira for your business

Browse Veira by business type