Many salaried employees in Kenya believe that because their employer deducts tax on their behalf every month, they do not need to do anything else at the end of the year. This is a common and costly misunderstanding.
Every employee with a KRA PIN is required to file an annual income tax return, regardless of whether PAYE was deducted correctly. This applies to salaried workers in Meru County, Nkubu, Isiolo, Tharaka Nithi, Embu, Kirinyaga, and across Kenya. Our team at Mutea & Associates CPA in Nkubu helps employees across the region stay compliant every year.
What Is PAYE?
PAYE stands for Pay As You Earn. It is the system through which employers deduct income tax from employees’ salaries every month and remit it to the Kenya Revenue Authority (KRA) on their behalf.
PAYE is calculated on gross salary minus allowable deductions and is applied against individual tax bands set under the Income Tax Act (Cap 470). Although your employer deducts PAYE monthly, you, the employee, are still responsible for filing your own annual return confirming the income earned and tax deducted.
What Is the P9 Form?
The P9 form (officially the P9A form) is a document issued by your employer at the end of each year. It is a summary of your employment income and PAYE deductions for the full year and contains:
- Your full name and KRA PIN
- Your employer’s KRA PIN and name
- Your gross pay, month by month and as a full-year total
- Total allowances and benefits in kind
- Total PAYE deducted by your employer
- Personal relief applied
| You must have your P9 form before you can file your annual return. Request it from your HR or Payroll department for the year ended 31st December 2025. Your employer is legally required to issue it. If they delay, follow up in writing and keep a record. |
Current PAYE Tax Bands in Kenya (2025)
| Monthly Taxable Income (Ksh) | Rate |
| 0 to 24,000 | 10% |
| 24,001 to 32,333 | 25% |
| 32,334 to 500,000 | 30% |
| 500,001 to 800,000 | 32.5% |
| Above 800,000 | 35% |
Every individual is entitled to a personal relief of Ksh 2,400 per month (Ksh 28,800 per year), deducted from the tax otherwise payable.
Step-by-Step: How Employees File KRA Returns on iTax
Step 1: Log In to KRA iTax
Go to itax.kra.go.ke and log in with your KRA PIN and password.
Step 2: Select the Correct Return Type
Navigate to Returns > File Return. Select Income Tax, Resident Individual. Select the return period: January 2025 to December 2025.
Step 3: Download and Open the Returns Form
Click Download to get the Excel returns form. Open it in Microsoft Excel and enable macros when prompted. Do not open it in Google Sheets or LibreOffice.
Step 4: Fill In the Employment Income Tab Using Your P9 Form
- Basic salary, total gross earnings for the year
- Benefits in kind, company car, housing, or other perquisites
- PAYE deducted, total PAYE shown on your P9 form
- Personal relief, annual amount of Ksh 28,800
- Insurance relief, if you pay life insurance or education policy premiums
| Critical tip Use the cumulative (full-year) figures from your P9 form, not monthly figures. Entering monthly amounts instead of the annual total is the most common filing error. |
Prefer to leave it to a professional?
Mutea and Associates CPA in Nkubu handles the entire KRA returns process for individuals and businesses across Meru, Isiolo, Tharaka Nithi, Embu and Kirinyaga. You bring the documents. We do the rest. Book your returns filing appointment.
Step 5: Validate, Generate, and Upload
Click Validate in the Excel form, correct any errors, then click Generate to create a .zip file. Return to iTax, go to Returns > File Return, select your .zip file, and click Submit. Download your Acknowledgement Receipt as proof of filing.
What If My Employer Deducted Too Much or Too Little PAYE?
If your employer over-deducted PAYE, you are entitled to a tax refund from KRA, triggered by filing your accurate annual return.
If your employer under-deducted PAYE, you will have a tax balance to pay. This should be settled through the iTax payment system before the June 30th deadline to avoid penalties.
Employees with Multiple Employers
If you worked for more than one employer in 2025, you will have two P9 forms, one from each employer. Both must be included on your annual return. Having two employers often results in an underpayment of tax because one employer may not have applied the full personal relief. Filing your return accurately corrects this.
Help Filing Employee Returns in Meru County
Are you a salaried worker in Meru, Nkubu, Isiolo, Tharaka Nithi, Embu, or Kirinyaga who needs help filing your PAYE returns? Mutea & Associates CPA in Nkubu handles employee tax returns efficiently and affordably. Bring us your P9 form and we take care of the rest.
See our Tax Accounting Services.
Frequently Asked Questions, Employee KRA Returns
Do employees need to file KRA returns if PAYE is already deducted?
Yes. Even if your employer deducts PAYE every month, you are still required to file an annual income tax return on KRA iTax by 30th June each year.
What is the P9 form used for?
The P9 form is your employer’s summary of your annual employment income and PAYE deducted. It is the primary document you need to fill in your annual income tax return.
What if my employer does not give me a P9 form?
Request it in writing from your HR or payroll department. Your employer is legally obliged to issue it. If they refuse, seek guidance from an ICPAK-registered CPA.
What if I had two jobs in 2025?
You will have two P9 forms, one from each employer. Both must be included on your annual return. Having two employers can result in an underpayment of tax that must be settled.
Can I claim a tax refund if too much PAYE was deducted?
Yes. If your return shows more PAYE was deducted than your actual tax liability, you can claim a refund from KRA. An accurate annual return is how you trigger this refund.
What is the deadline for filing employee KRA returns in 2026?
The deadline is 30th June 2026, covering income from 1st January 2025 to 31st December 2025.
Need help with your KRA returns in Meru County?
Mutea and Associates Certified Public Accountants is based in Nkubu, Meru County. We file KRA returns for employees, self-employed individuals, landlords, SMEs and companies across Meru, Isiolo, Tharaka Nithi, Embu and Kirinyaga. Fast, accurate and fully compliant.
Contact us today See our tax servicesIf your business is also required to comply with E-TIMS, we can help with that too. See our E-TIMS boarding and compliance services.
