NAIROBI, Kenya – The Kenya Revenue Authority (KRA) has announced plans to streamline the Pay As You Earn (PAYE) return process for all employers, including Micro, Small, and Medium Enterprises (MSMEs), in a bid to enhance compliance.
In a statement, KRA Board Chairman Nderitu Mureithi and Commissioner General Humphrey Wattanga emphasized that the Authority is committed to reducing the cost of compliance through innovative solutions.
“The complexities of PAYE returns often create administrative burdens and discourage compliance. Our aim is to simplify this process, making it more user-friendly for all employers, including MSMEs,” said Commissioner General Wattanga.
New Filing Options
The new PAYE return system, once implemented, will offer businesses multiple filing options, including an Excel-based return, a mobile application, a web-based platform, and API integration.
These enhancements are expected to facilitate easier compliance with tax laws by enabling employers to efficiently file their employees’ tax deductions to KRA.
Call to Combat Counterfeit Products
Beyond tax compliance, KRA Chairperson Mureithi urged business owners to collaborate in fighting counterfeit products to create a fair business environment.
“We are actively engaging stakeholders to understand their challenges and identify solutions. Our open-door policy ensures that taxpayers are heard and supported in meeting compliance requirements,” he stated.
MSMEs Welcome the Move
Micro and Small Enterprise Authority (MSEA) Board Chairman James Mureu lauded KRA’s efforts, particularly the establishment of a dedicated department to address the concerns of MSMEs.
“We are on the right track. It is encouraging to see KRA working closely with MSMEs, listening to their concerns, and taking steps to create a conducive business environment,” said Mureu.
