Pay As You Earn (PAYE) is the mandatory tax levied on all employees’ income. In Kenya, the government manages the PAYE tax through the Kenya Revenue Authority (KRA), which collects the statutory contributions from the employer, before salary and wages are paid to the employee. This income tax applies to all employees, permanent, temporary, full time and part time except for the employment that is not longer than 1 month. The income tax applies to wages, salaries, commissions, allowances, fees, bonuses and any other income for which the employer is chargeable by the employee for services provided
paye tax rates 2020
Following the assent of the Tax Laws Amendment Bill 2020, new tax rates for Kenyan PAYE come into effect from April 2020. The rates are an update from the previous PAYE 2018 rates. The same has also been officially posted on KRA website.