MaxisHR manages all Kenya employer tax obligations — PAYE (due 9th of following month via iTax), VAT at 16%, corporate tax at 30%, and withholding tax across 8 payment types. Zero penalties. Full compliance with Employment Act 2007.
Kenya employers face a multi-layered tax compliance framework governed by Employment Act 2007 and administered by Kenya Revenue Authority (KRA). Obligations include monthly PAYE withholding and remittance, VAT filing (if registered), social security contributions, withholding taxes on qualifying payments, and annual corporate income tax returns.
Non-compliance carries severe consequences — late PAYE filings attract penalties of up to 25% of tax due + 1% interest per month, while missed VAT returns trigger 5% of tax due or KES 10,000 (higher) + 2% interest per month. Kenya's Kenya Revenue Authority (KRA) has significantly increased enforcement capacity in recent years.
MaxisHR's Kenya tax compliance service covers every obligation — PAYE, VAT, corporate tax, withholding tax, and payroll reconciliation — filed automatically before every deadline. Our clients have a 100% on-time filing record across all Kenya tax authorities.
| Component | Employee | Employer | Notes |
|---|---|---|---|
| Corporate Income Tax | 30% | Annual | Return due 6 months after financial year-end |
| VAT (Standard Rate) | 16% | Monthly (by 20th of following month) | Registration threshold: KES 5,000,000/yr |
| PAYE Income Tax | Graduated — withheld from employees | 9th of following month via iTax | Remitted to Kenya Revenue Authority (KRA) monthly |
| WHT — Dividends (resident) | 5% | At source | Final withholding tax |
| WHT — Dividends (non-resident) | 10% | At source | Final withholding tax |
| WHT — Interest (resident) | 15% | At source | Final withholding tax |
| Component | Employee | Employer | Notes |
|---|---|---|---|
| Dividends (resident) | 5% | — | Final withholding tax |
| Dividends (non-resident) | 10% | — | Final withholding tax |
| Interest (resident) | 15% | — | Final withholding tax |
| Interest (non-resident) | 15% | — | Final withholding tax |
| Royalties (resident) | 5% | — | Final withholding tax |
| Royalties (non-resident) | 20% | — | Final withholding tax |
| Management fees (non-resident) | 20% | — | Final withholding tax |
| Consultancy fees | 5% | — | Withheld by payer — offset against final tax |
| Component | Employee | Employer | Notes |
|---|---|---|---|
| January | PAYE return (Dec) — 9 Jan | VAT return (Dec) — 20 Jan | Instalment tax Q1 | — | Filed with Kenya Revenue Authority (KRA) |
| February | PAYE return (Jan) — 9 Feb | VAT return (Jan) — 20 Feb | NSSF/SHIF returns | — | Filed with Kenya Revenue Authority (KRA) |
| March | PAYE return (Feb) — 9 Mar | VAT return (Feb) — 20 Mar | — | Filed with Kenya Revenue Authority (KRA) |
| April | PAYE return (Mar) — 9 Apr | VAT return (Mar) — 20 Apr | Instalment tax Q2 | — | Filed with Kenya Revenue Authority (KRA) |
| June | Corporate tax return (if Dec year-end) — 30 Jun | Annual PAYE reconciliation | — | Filed with Kenya Revenue Authority (KRA) |
| July | PAYE return (Jun) — 9 Jul | VAT return (Jun) — 20 Jul | Instalment tax Q3 | — | Filed with Kenya Revenue Authority (KRA) |
| October | PAYE return (Sep) — 9 Oct | VAT return (Sep) — 20 Oct | Instalment tax Q4 | — | Filed with Kenya Revenue Authority (KRA) |
| December | Annual returns (BRS) | P9 tax certificates issued to employees | — | Filed with Kenya Revenue Authority (KRA) |
| Component | Employee | Employer | Notes |
|---|---|---|---|
| Late PAYE filing | 25% of tax due + 1% interest per month | — | Enforced by Kenya Revenue Authority (KRA) |
| Late VAT filing | 5% of tax due or KES 10,000 (higher) + 2% interest per month | — | Enforced by Kenya Revenue Authority (KRA) |
| Late corporate tax | 20% of tax due + 2% interest per month | — | Enforced by Kenya Revenue Authority (KRA) |
| Failure to withhold tax | 10% of amount not withheld | — | Enforced by Kenya Revenue Authority (KRA) |
| Late instalment tax | 20% penalty on shortfall | — | Enforced by Kenya Revenue Authority (KRA) |
| Tax evasion | 200% of evaded tax + criminal prosecution | — | Enforced by Kenya Revenue Authority (KRA) |
Tax compliance in Kenya is complex, deadline-driven, and high-stakes. MaxisHR eliminates the risk — automating every filing, managing every deadline, and keeping your Kenya entity fully compliant year-round.
MaxisHR's compliance engine tracks every Kenya tax deadline — PAYE by 9th of following month via iTax, VAT Monthly (by 20th of following month), CIT by 6 months after financial year-end — and files automatically before each one. Our Kenya clients have never paid a late filing penalty. Not once.
MaxisHR's East Africa tax team monitors every Kenya Revenue Authority (KRA) update, budget announcement, and rate change — updating your compliance setup in real time. You always pay the correct rate, claim available reliefs, and benefit from applicable double tax treaties (Kenya has 14).
Building an in-house Kenya tax function requires a senior tax manager, local accounting software, external audit fees, and ongoing legal counsel. MaxisHR's managed compliance service replaces all of that — at a fixed monthly cost with complete visibility over every filing.
MaxisHR maintains a complete, organised, and immediately retrievable audit trail for every Kenya tax return — PAYE records, VAT reconciliations, WHT certificates, and CIT workings — stored securely and exportable on demand for any Kenya Revenue Authority (KRA) audit or review.
Expanding beyond Kenya? MaxisHR manages tax compliance across all 55 African countries from a single dashboard. One partner, one invoice, one compliance calendar — covering all your African entities simultaneously.
MaxisHR's platform eliminates manual tax compliance in Kenya — automating calculations, filings, and remittances so your team focuses on business growth, not tax administration.
MaxisHR calculates Kenya PAYE for every employee using 2026 graduated tax brackets, deducts the correct amount from each payslip, and files the monthly return with Kenya Revenue Authority (KRA) by 9th of following month via iTax — automatically, every month.
MaxisHR prepares your Kenya VAT return (16% standard rate) from your transaction data, reconciles output and input VAT, and submits to Kenya Revenue Authority (KRA) Monthly (by 20th of following month). Input tax claims are maximised within the legal framework.
Track every Kenya tax obligation in real time — filed returns, pending deadlines, payment confirmations, and penalty exposure — all in one dashboard. Receive alerts 30 days, 7 days, and 24 hours before each deadline.
MaxisHR identifies all Kenya payments requiring withholding tax, calculates the correct rate (including treaty reductions where applicable), issues WHT certificates to recipients, and remits to Kenya Revenue Authority (KRA) on your behalf.
All Kenya tax returns, payment receipts, Kenya Revenue Authority (KRA) correspondence, and compliance workings are stored in MaxisHR's encrypted document vault — accessible 24/7 and immediately exportable for audit purposes.
MaxisHR exports Kenya tax data in CSV, Excel, and PDF formats compatible with Xero, QuickBooks, Sage, and SAP. Monthly tax reports, journal entries, and payment summaries are generated automatically for your finance team.
MaxisHR files every Kenya tax return — PAYE, VAT, WHT, and corporate tax — on time, every time. Trusted by companies across East Africa. Get a fixed-price compliance quote today.
MaxisHR manages employer tax compliance — PAYE, VAT, corporate tax, and withholding tax — across every African country. Find rates, deadlines, and compliance guides for your market.