KRA tax calendar
2026 filing deadlines
This guide replaces outdated claims about the Finance Bill 2025 with a dated account of the payroll issues employees need to check. A Bill, an enacted Act and an implementation notice are not interchangeable. Use the provision’s effective date when reviewing a payslip.
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The PAYE bands were not invented in 2025
KRA’s current PAYE page continues to list the five rates introduced in July 2023: 10%, 25%, 30%, 32.5% and 35%. It lists resident personal relief of KES 2,400 monthly. The old article’s proposed 20% band and KES 2,880 personal relief should not be used for payroll.
Deductions and employer responsibility
Current payroll treatment recognises employee SHIF and Housing Levy as allowable deductions. The mortgage-interest and registered-pension ceilings are KES 30,000 monthly, subject to eligibility and the relevant limits. Do not also claim superseded SHIF or Housing Levy relief credits.
KRA’s October 2025 notice explains that employers must apply supported eligible deductions, reliefs and exemptions. Employees should supply the documents payroll needs. This is a compliance obligation, not a guarantee that every expense an employee requests qualifies.
February 2026 NSSF limits
The Year 4 notice raises the pensionable earnings ceiling to KES 108,000, with maximum employee NSSF of KES 6,480 and an equal employer contribution. This is a contribution change under the phased NSSF structure, not a new PAYE band. See the NSSF guide for its net-pay effect.
2026 gratuity conditions
KRA’s Finance Act 2026 summary specifies at least three continuous years of service under the relevant contract, or an extension of a three-year contract, and gratuity not exceeding 31% of the period’s emoluments for the exemption it describes. Do not rely on an older blanket statement that all gratuity is tax-free. See the terminal-dues guide and check the payment’s period and conditions.
The filing change from January 2027
KRA says individual return filing moves to the fourth month after year-end from 1 January 2027. For calendar-year individuals that means 30 April. Keep this distinct from the 30 June 2026 deadline for 2025 income and the employer’s monthly PAYE deadline.
What to do now
Check payroll’s NSSF period, supported reliefs and treatment of unusual payments. Prepare annual documents earlier for the next filing season. Preserve old-period calculations rather than applying new rules retrospectively. The dates in this guide explain different changes; they do not turn every 2026 payroll calculation into a 2027 calculation.
Sources and review date
Reviewed on 21 October 2026. Use the rules for the period being calculated; historical payslips may use different limits.