What is PAYE (Pay As You Earn)?

Pay As You Earn (PAYE) is the income tax that employers deduct from employees’ monthly salaries and remit to KRA by the 9th of the following month.

A real Kenyan example

Employee earns KES 80,000 taxable. PAYE bands apply (10%, 25%, 30%...) and personal relief of KES 2,400 is deducted. Net PAYE ≈ KES 16,383.

Formula

PAYE = Bracketed tax − Personal relief (KES 2,400/month)

Why it matters

PAYE is the largest deduction on most Kenyan payslips. Errors cost the employer interest and penalties.

How Veira helps

Veira payroll computes PAYE under current brackets, includes personal relief and produces the iTax-ready file.

FAQs

Brackets?
10% up to 24k, 25% to 32,333, 30% to 500k, 32.5% to 800k, 35% above.
Personal relief?
KES 2,400/month for residents.
Filing deadline?
By 9th of the following month.
Is housing levy deductible?
Yes, AHL reduces PAYE-taxable income.
Does Veira file PAYE?
Yes, with iTax-ready output.

Related terms

See all 34 terms