KRA Issues Urgent PAYE Warning as Employers Race Against September 9 Deadline Amid System Hitch
Kenya Revenue Authority (KRA) has acknowledged a technical problem affecting the filing of August 2026 Pay As You Earn (PAYE) returns, leaving employers scrambling to meet a looming tax deadline.
The tax authority has urged affected employers and taxpayers to remain patient as its technical team works to resolve the problem, after complaints emerged from users unable to successfully submit their monthly PAYE returns through the iTax system.
The disruption comes at a particularly sensitive time, with employers facing a September 9 deadline to file their August PAYE returns and remit tax deducted from employees’ salaries.
Responding to complaints from taxpayers, KRA said its technical team was already aware of the problem and was working towards a solution.
“Hi, kindly be patient as we are working to resolve the issue,” KRA said in its response to affected taxpayers.
The authority also provided an alternative route for taxpayers who remain unable to complete their filings online.
KRA advised affected taxpayers to send their duly completed returns to callcentre@kra.go.ke, allowing the authority to assist them from its end while the technical problem is being addressed.
Employers face September 9 tax deadline
The system disruption has raised concerns among employers who fear being penalised if they are unable to file their returns before the statutory deadline.
Under KRA’s current guidance, employers must deduct PAYE from employees’ earnings and file the corresponding PAYE return and remit the tax on or before the ninth day of the following month.
This means PAYE relating to August 2026 is due by September 9, 2026.
With the deadline approaching, employers have been left with little room for delays, particularly those relying entirely on the online system to complete their statutory obligations.
Potential penalties add to pressure
The technical hitch has also heightened anxiety because missing the deadline can have financial consequences.
KRA states that late filing of a PAYE return attracts a penalty of 25 per cent of the tax due or KSh10,000, whichever is higher. Late payment can attract a further 5 per cent penalty, together with interest of 1 per cent per month or part of a month on the unpaid tax.
The prospect of penalties has therefore increased pressure on employers to complete their filings as soon as the system becomes available.
KRA yet to give restoration timeline
Despite acknowledging the problem, KRA has not publicly indicated exactly when the affected service will be fully restored.
The authority’s response, however, indicates that its technical team is actively working to address the issue.
The disruption comes amid wider changes to Kenya’s digital tax administration system. KRA previously introduced a simplified PAYE filing process, with the full rollout of the simplified Excel PAYE return taking effect from July 1, 2025.
KRA has also recently warned taxpayers affected by electronic system errors to retain evidence such as screenshots, support tickets and correspondence, particularly where a system problem interferes with compliance.
For employers currently unable to file their August PAYE returns, KRA’s advice is to remain patient, preserve evidence of the technical difficulty and use the designated support channel to submit completed returns for assistance.
With September 9 fast approaching, attention will now turn to whether KRA can restore the affected service in time to prevent employers from being caught between a technical failure and a statutory tax deadline.
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