Kenya Tax & Statutory Deadlines 2026: The Monthly Compliance Calendar for SMEs
The most common reason Kenyan businesses pay penalties is not aggressive tax planning — it is missed deadlines. And since January 2026, KRA's eTIMS validation regime matches declared income and expenses against eTIMS invoices and the other records KRA holds — so discrepancies get picked up faster.
This guide consolidates every monthly, quarterly and annual deadline that matters for a small business or employer in Kenya, verified against official sources as of 28 October 2026.
1. The 9th: Your Payroll Deadline Cluster
If you have employees, four statutory payments are due by the 9th day of the month following the payroll period:
- PAYE — income tax deducted from salaries, filed through iTax on the P10 return (KRA PAYE page).
- NSSF — Tier I and Tier II contributions, due by the 9th day of the following month (PwC Kenya, Mercans). Since 1 February 2026 (Year 4 rates): lower earnings limit KES 9,000, upper limit KES 108,000, maximum KES 6,480 per side — KES 12,960 combined per month. See our NSSF registration guide.
- SHIF — the Social Health Insurance Fund contribution at 2.75% of gross salary (minimum KES 300, no upper cap), remitted to the Social Health Authority by the 9th (PwC Kenya). See our SHIF guide.
- Affordable Housing Levy (AHL) — 1.5% from the employee plus 1.5% from the employer (3% of gross, no cap), filed through iTax under Sheet M of the P10. The statutory deadline is the ninth working day after the end of the payroll month (PwC Kenya); remitting by the 9th calendar day is a safe internal target.
2. The 20th: VAT, Turnover Tax & Other Monthly Returns
- VAT (VAT3) — monthly return and payment by the 20th for VAT-registered businesses (standard rate 16%; see our VAT registration guide).
- Turnover Tax (TOT) — 1.5% of gross sales for resident businesses with annual turnover between KES 1 million and KES 25 million, filed monthly by the 20th (KRA TOT page). See our Turnover Tax guide.
- Monthly Rental Income (MRI) tax — 7.5% of gross qualifying residential rent for eligible resident landlords within the existing annual threshold (up to KES 15 million). Commercial rental income is generally outside this regime.
- Domestic excise duty — paid by the 20th of the following month (KRA Filing & Paying Taxes).
Resident MRI rate: KRA's residential-rental page states 7.5% in its rate section, while its filing instructions and FAQ 438 still state 10%. The resident rate is 7.5% under the Income Tax Act; the enacted Finance Act 2026 did not restore it to 10%. If iTax shows a different rate, confirm it with KRA before filing or paying.
3. Withholding Tax: Within 5 Working Days
Withholding tax on payments like rent, dividends and professional fees must be remitted to KRA within five working days of the deduction — Section 35 of the Income Tax Act (Cap 470) as amended by the Finance Act, 2023. This replaced the previous "20th of the following month" rule, which some older references still cite. Build WHT remittance into each payment run, not month-end.
4. Quarterly Instalment Tax
Companies pay corporate income tax in four equal instalments during the year. For a December year-end, the dates are 20 April, 20 June, 20 September and 20 December (20th of the 4th month, then every three months). Individuals whose annual tax exceeds KES 40,000 (excluding final taxes) follow the same quarterly dates.
5. Annual Deadlines
- Individual income tax return: due 30 June 2026 for the 2025 income year; any balance of tax was due by 30 April 2026. For the 2025 income year, file the individual return by 30 June 2026; any balance of tax was due by 30 April 2026. The 30 April filing deadline begins with the 2026 income year (returns filed in 2027), so it does not change the 2025-year filing date.
- Corporate income tax return: due within six months of year-end (30 June for December year-ends); balance of tax by 30 April.
- P9 forms: employers must issue P9 certificates to employees by 31 January following the previous calendar year.
💡 Weekends and public holidays: If a statutory deadline falls on a weekend or public holiday, confirm in iTax whether the filing rule moves it to the next working day; do not assume an extension applies automatically.
6. 2026 Rates Quick Table
Rates verified as of 28 October 2026 against KRA, PwC Kenya and Mercans sources:
| Item | 2026 rate / threshold |
|---|---|
| PAYE bands (monthly) | 10% up to KES 24,000 · 25% 24,001–32,333 · 30% 32,334–500,000 · 32.5% 500,001–800,000 · 35% above 800,000 |
| Personal relief | KES 2,400/month |
| SHIF | 2.75% of gross (min KES 300, no cap) |
| NSSF (Year 4) | Max KES 6,480 each side — KES 12,960/month combined |
| Affordable Housing Levy | 1.5% + 1.5% (3% of gross, no cap) |
| VAT (standard) | 16% |
| Turnover Tax | 1.5% of gross sales (KES 1M–25M) |
| Monthly Rental Income | 7.5% of gross qualifying resident residential rent (eligibility limits apply) |
| Corporate income tax | 30% flat (resident) |
7. Penalties at a Glance
Under the Tax Procedures Act, 2015 (KRA penalties page):
- PAYE late payment — 5% of unpaid tax as a late-payment penalty, plus simple interest at 1% per month or part of a month on unpaid tax; a separate late-filing penalty may apply.
- VAT late payment — 5% of unpaid tax plus simple interest of 1% per month or part of a month. Late filing is a separate penalty; check the current Act.
- Turnover Tax — late-filing penalties apply under the Tax Procedures Act, 2015 according to the taxpayer's type (individual or non-individual) — see the KRA penalties page.
- Annual individual return — KES 2,000 or 5% + 1% per month.
- Annual corporate return — KES 20,000 or 5% + 1% per month.
- SHIF late payment — 2% per month · AHL — 3% per month.
- A withholding agent that fails to deduct or remits late becomes personally liable for the tax, plus penalties and interest.
- Finance Act, 2026: the definitions of management/professional fees and royalties now capture payment-network, payment-processing and digital-platform charges — so fees paid to payment providers (including card and payment-app processors) can carry withholding tax. Confirm classification with KRA or a tax adviser.
8. Build Your Monthly Close Routine
- By the 5th: lock payroll and sales data for the previous month.
- By the 7th: prepare P10 (PAYE + AHL), NSSF and SHIF schedules.
- By the 9th: remit PAYE, NSSF, SHIF and AHL.
- By the 18th: prepare VAT3/TOT figures; remit withholding tax with each payment run.
- By the 20th: file and pay VAT, TOT, MRI and excise.
- Quarterly: instalment tax on the 20th of the instalment month.
9. Frequently Asked Questions
What is the deadline for PAYE in Kenya?
PAYE is due by the 9th day of the month following the payroll period.
When is VAT due in Kenya?
VAT3 returns and payments are due by the 20th of the following month.
When is the individual income tax return due?
For the 2025 income year, file the individual return by 30 June 2026; any balance of tax was due by 30 April 2026. The 30 April filing deadline begins with the 2026 income year (returns filed in 2027), so it does not change the 2025-year filing date.
Is Turnover Tax still 3%?
No. Under Section 12C of the Income Tax Act as amended by the Affordable Housing Act 2024, TOT is 1.5% of gross sales for businesses with annual turnover between KES 1 million and KES 25 million.
Sources and update record
Updated 26 October 2026: Clarified late-payment treatment and distinguished 2025 filing and payment dates from 2026 rules.
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