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2026 KRA rates, instant
A salary overpayment needs two reconciliations: what payroll should have calculated and what money actually moved. A duplicate bank transfer is different from entering the wrong salary in payroll. Establish which happened before agreeing a recovery figure.
Use the PAYE calculator to cross-check an ordinary salary calculation, and the employer payroll guide for the wider control process. The calculator cannot decide a disputed repayment obligation or correct filed tax records.
Identify the type of error
- Payment error: payroll was correct, but the bank instruction paid the net salary twice or sent the wrong amount.
- Earnings error: payroll used an incorrect salary, duplicated allowance or wrong number of days.
- Deduction error: earnings were correct, but tax or another deduction was incorrectly calculated or omitted.
Ask for the approved pay terms, original payslip and payment references. Record the relevant month and whether a later adjustment has already been made. Otherwise an amount recovered once through payroll might accidentally be requested again by bank transfer.
Example: a duplicate transfer
Suppose a correct payslip shows KES 70,000 net, but two KES 70,000 transfers reach the employee. Total cash received is KES 140,000 and the payment difference is KES 70,000. That difference does not establish a second month of earned salary. Confirm the transaction evidence and payroll record before deciding what needs correction.
If payroll itself was also duplicated, the case is no longer only a bank-payment error. Ask whether the duplicate reached the payroll register, statutory schedules or tax return. A single repayment does not automatically repair those records.
Example: an incorrect gross salary
For illustration, suppose original payroll records show gross earnings of KES 100,000 and total employee deductions of KES 30,000, giving KES 70,000 net. A supported recalculation shows KES 90,000 gross, KES 27,000 deductions and KES 63,000 net. The gross difference is KES 10,000, the deduction difference KES 3,000 and the cash difference KES 7,000.
These invented figures illustrate reconciliation only; they are not Kenyan statutory deduction calculations. They show why demanding the gross difference without explaining tax and other deductions can leave the employee unable to reconcile the request. Obtain a written schedule explaining the proposed recovery and how each deduction adjustment will be handled.
Keep recovery and tax correction separate
Confirm the basis and applicable limits for any deduction from future wages. See salary deduction rules for that separate legal question. Do not assume a payroll error permits an unlimited deduction or that an informal repayment plan settles the tax treatment.
Where a filed return needs amendment, use the PAYE return correction process. KRA’s amendment guidance distinguishes automatic validation of increased liability from approval for a decrease. A submitted reduction is not evidence that a cash refund has been paid.
Close the case with a signed-off reconciliation
Retain the original and corrected payroll calculations, evidence of money returned or recovered, and the status of each tax or contribution correction. Identify who is responsible for each outstanding action. Verify repayment instructions through the employer’s normal finance channel before transferring money.
Ask for confirmation of the remaining balance after every instalment and check the next payslip for unintended duplicate recovery. Update the year-end P9 only through the employer’s controlled correction process; KRA’s tax deduction card records monthly income and tax figures that should remain explainable. Use the payroll records checklist to retain the audit trail. If the amount or entitlement remains disputed, obtain appropriate employment or tax advice before treating the case as resolved.
Sources and review date
Published and reviewed on 2 November 2026. Use the rules and official instructions applicable to the payroll period.