What is the main monthly tax deadline for employers in Kenya?

The primary deadline is the 9th of the month following salary payment. This is for remitting PAYE, NSSF, SHIF, and the Affordable Housing Levy (AHL).

When is the individual income tax return due for the 2026 tax year?

The deadline for filing individual income tax returns for the year ending 31st December 2026 is on or before 30th June 2027.

What are the penalties for filing PAYE late in Kenya?

The penalty for late filing and payment of PAYE is 25% of the tax due or KES 25,000, whichever amount is higher. Additionally, a late payment interest of 1% per month is charged on the unpaid tax.

Do I still need to file an annual return if my employer remits PAYE?

Yes. Every individual with a KRA PIN must file an annual tax return. This is to declare any other income earned during the year and to formally claim personal reliefs.

What are the 2026 contribution rates for SHIF and the Housing Levy?

As of 2026, the Social Health Insurance Fund (SHIF) contribution is 2.75% of the gross monthly salary. The Affordable Housing Levy (AHL) is 1.5% from the employee, which is matched by a 1.5% contribution from the employer.

Can a foreign company operate in Kenya without a local payroll partner?

While technically possible, it is extremely challenging and risky. The complexities of calculating and remitting multiple statutory deductions correctly require local expertise. Using an Employer of Record (EOR) or a dedicated payroll service is the standard and safest approach for compliance.

Kenya Tax Compliance Calendar 2026: Key KRA Filing Dates

An employer’s guide to the Kenya tax compliance calendar for 2026, with all key dates for PAYE, NSSF, SHIF, the Housing Levy, and corporation tax. For any finance manager or business owner operating in Kenya, meeting statutory deadlines is a critical, non-negotiable part of running the organisation. Missing a KRA filing date for payroll deductions or corporate tax invites significant penalties that can disrupt cash flow and damage your reputation. This guide is your definitive **Kenya tax compliance calendar for 2026**, detailing every key monthly and annual deadline your business must meet to remain in good standing. Staying organised is the only way to avoid fines and maintain a clean compliance record. We break down the crucial dates for PAYE, NSSF, SHIF, the Housing Levy, VAT, and Corporation Tax. ## Monthly Tax and Statutory Deadlines for 2026 The most demanding compliance rhythm for employers is the monthly cycle. These obligations centre on employee deductions, which must be calculated correctly, remitted to various government bodies, and supported by accurate filings. ### By the 9th of Each Month: Payroll Deductions The most important date on any Kenyan payroll manager's calendar is the 9th day of the month. All deductions made from employee salaries in the previous month must be paid to the respective authorities by this date. For example, deductions from July 2026 salaries must be remitted by the 9th of August 2026. This single deadline covers four major statutory contributions. * **PAYE (Pay As You Earn):** This is the income tax withheld from an employee's salary. It must be calculated using the official KRA tax bands for 2026. The payment must be accompanied by the P10 return filed via the KRA iTax portal. Failure to remit PAYE on time attracts a steep penalty of 25% of the tax due or KES 25,000, whichever is higher, plus 1% monthly interest on the outstanding amount. For a full breakdown, see our employer's guide to PAYE in Kenya. * **NSSF (National Social Security Fund):** These contributions fund employee retirement benefits. The rate is 6% from the employee and 6% from the employer. It is structured into Tier I (up to KES 720) and Tier II (up to KES 1,440), for a maximum total of KES 2,160 from the employee, matched by the employer. Remittances are made via the NSSF e-service portal. * **SHIF (Social Health Insurance Fund):** The SHIF replaced the old NHIF system, providing health coverage for employees and their dependents. Employers must deduct and remit 2.75% of each employee's gross monthly salary. There is no upper salary cap, but a minimum monthly contribution of KES 300 applies. Find more details in our complete guide to SHIF for employers. * **Affordable Housing Levy (AHL):** This levy is mandatory. Employers must deduct 1.5% of an employee's gross monthly salary and contribute a matching 1.5%. These funds are paid to the KRA alongside PAYE and are also due by the 9th. Managing these four distinct calculations, payments, and filings accurately every month is a significant administrative burden. This complexity is why many organisations choose to use a dedicated payroll processing service to guarantee perfect compliance. ### By the 20th of Each Month: VAT and Withholding Tax While not directly related to payroll, two other monthly deadlines are vital for most businesses. * **Value Added Tax (VAT):** If your organisation's annual turnover exceeds KES 5 million, you must register for VAT. The VAT return and any tax due must be filed and paid by the 20th of the following month. * **Withholding Tax:** If you have paid for specific services, such as professional or management fees, you must withhold a percentage of that payment and remit it to the KRA. This is also due by the 20th of the month after the payment was made. ## Annual and Bi-Annual Tax Deadlines for 2026 Beyond the monthly cycle, several annual obligations require careful planning. These relate to the company's financial performance and the individual tax duties of its employees and directors. ### Key Dates for Corporate Tax and Company Filings For registered companies, the main annual focus is Corporation Tax, which is set at 30% of taxable profits for resident companies. * **Corporation Tax Instalments:** Companies pay their tax in instalments based on their financial year. For a standard year ending 31st December, the 2026 deadlines are: * **20th April 2026:** First instalment (25%) * **20th June 2026:** Second instalment (25%) * **20th September 2026:** Third instalment (25%) * **20th December 2026:** Final instalment (25%) * **Final Corporation Tax Return:** The final tax return, along with audited accounts, must be filed by the last day of the sixth month after the company's financial year ends. For a company with a 31st December 2026 year-end, the filing deadline is **30th June 2027**. * **Annual Company Returns:** Every company registered in Kenya must file an annual return with the Business Registration Service (BRS). The deadline is linked to the company's date of incorporation. This filing confirms the current details of directors, shareholders, and the registered office. ### Key Date for Employees and Directors A common mistake is assuming that PAYE deductions fulfil an employee's entire tax obligation. This is not true. Every individual with a KRA PIN must file their own annual tax return. * **Individual Income Tax Return (ITR):** The purpose of the ITR is to declare all sources of income for the year, including employment, business income, and rent. The deadline for filing the return for the 2026 calendar year is **30th June 2027**. This is a strict deadline, and failure to file results in an automatic penalty, even if no extra tax is owed. ## Understanding the Penalties for Non-Compliance Kenyan authorities enforce tax and statutory laws rigorously. The penalties for late filing or late payment are severe and compound over time. As noted, a late PAYE payment incurs a 25% penalty on the tax due plus 1% monthly interest. Late payment of NSSF contributions attracts a penalty of 5% of the outstanding amount for each month or part of a month it remains unpaid. These financial penalties, along with the management time required to resolve compliance issues, make it far more effective to ensure accuracy from the start. For foreign companies or NGOs without a local legal entity or deep expertise in Kenyan regulations, the risk is even higher. An Employer of Record (EOR) service in Kenya can assume all legal responsibilities for payroll, tax, and statutory compliance, offering a secure and efficient way to operate. Keeping this calendar handy is the first step towards a compliant and stress-free year. By planning around these dates, you ensure your organisation remains in good standing with the KRA and other statutory bodies, allowing you to focus on your core business.

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