Kenya: KRA to Simplify Paye Returns for Msmes

1 April 2025
Capital FM (Nairobi)
By Kevin Rotich

Nairobi — The Kenya Revenue Authority (KRA) is working on simplifying the Pay As You Earn (PAYE) filing system that discourages MSMEs from submitting returns.

KRA Commissioner General Humphrey Wattanga explained the intricate PAYE system, which discourages compliance and creates an administrative burden for small businesses.

"Our aim is to simplify this process, making it more userfriendly for all employers, including Micro, Small, and Medium Enterprises (MSMEs)," said Wattanga.

When completed, the simplified PAYE return system will offer multiple filing options, including an Excel-based return, a mobile application, a web-based platform, and API integration, offering accessibility and convenience for all businesses.

During a stakeholder engagement with the Nyandarua Business Community in Nyahururu Town, KRA leadership also assured entrepreneurs of their continued support in streamlining tax procedures to enhance business efficiency.

KRA Board Chairman Nderitu Muriithi urged businesses to provide valuable feedback to help the Authority refine its services and improve operational efficiency.

"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.

The Micro and Small Enterprise Authority (MSEA) Board Chairman James Mureu commended KRA for prioritizing MSMEs in its engagement efforts.

He noted that the recent establishment of a dedicated department to address MSME concerns is a significant milestone in resolving historical tax challenges.

"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 Mr. Mureu.

He further urged KRA to balance stakeholder engagement with swift implementation of solutions.

KRA's ongoing leadership countrywide stakeholder engagements are part of a broader strategy to promote compliance, build trust with the business community, and improve service delivery.

Read the original article on Capital FM.

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