You just checked your KRA iTax statement and your heart sinks. For the last six months, your employer has been deducting PAYE from your salary… but it’s nowhere to be seen on your tax record. The panic is real. You’re picturing KRA penalties, a blocked eCitizen account, and maybe even a travel ban.
Relax, you’re not alone. This happens more than you think in Nairobi, Mombasa, and other towns. This guide cuts through the confusion. We’ll walk you through exactly what to do if your employer has not been remitting your PAYE to KRA, step by step, in plain language.
First, Confirm the Problem
Don’t accuse your employer based on a hunch. You need solid proof. Log into your KRA iTax portal. Go to the ‘Returns’ section and select ‘View Filed Returns’. Look for your monthly PAYE returns (P10).
If the months in question show ‘Filed’ but with a zero payment, or are missing entirely, you have your confirmation. Also, check your payslips. The deducted PAYE amount should be clearly listed each month.
Why This Is a Big Deal for You
This isn’t just your employer’s problem. Under Kenyan law, you are personally liable for your own tax. If KRA comes knocking, they will hold you responsible for the unpaid tax, plus penalties and interest. This can affect your credit score, ability to get loans, and even your passport renewal.
Think of it like this: KRA sees you received income. They don’t care if your boss pocketed the tax. They expect you to have paid it.
Step-by-Step: What to Do Immediately
Time is not on your side. The longer this goes on, the bigger the penalties. Follow these steps in order.
1. Gather Your Evidence
Before you say a word, collect your proof. This is your armour. Download and print or save PDFs of:
- Your payslips showing the PAYE deductions.
- Your bank statements showing the net salary deposits.
- Screenshots from iTax showing the missing PAYE remittances.
Organize them by month. This file is your power.
2. Have a Formal Conversation with Your Employer
Schedule a private meeting with HR or your direct manager. Go in calm but firm. Present the evidence you’ve gathered. Ask for a clear explanation and a written commitment on when the arrears will be paid to KRA.
Give them a reasonable deadline, like 7-14 working days. Sometimes it’s a genuine administrative error they can fix quickly. Get everything they promise in an email for your records.
If Your Employer Refuses or Ignores You
If the deadline passes with no action, or you get hostile vibes, it’s time to escalate. Your safety and livelihood come first.
3. Report to KRA Through the Right Channel
You can report anonymously, but providing your details helps KRA act faster. Use the KRA Tax Evasion Report Portal online. It’s designed for this. You can also visit your nearest KRA office—like the one at Times Tower or along Mombasa Road.
Provide all your evidence. KRA takes employer non-compliance seriously because it’s stealing from government revenue. They will audit your employer.
4. Involve the Labour Office (Ministry of Labour)
This is a breach of your employment contract. File a complaint at the County Labour Office. For Nairobi, head to the offices at Ngong Road or Industrial Area. They can summon your employer for a conciliation meeting.
Their involvement adds serious pressure and creates an official record of the dispute.
The Kenyan-Specific Reality: Protecting Yourself in a Tough Job Market
We know the job market is tough. The fear of being fired for “causing trouble” is real, especially before the end of the year when bonuses are due. But letting this slide is more dangerous.
Here’s a local pro-tip: Start discreetly looking for a new job as soon as you confirm the non-remittance. An employer who steals your tax is financially unstable and a red flag. Update your CV and quietly reach out to your network.
Also, budget for the worst. If KRA demands immediate payment, know your options. Some SACCOs, like Stima Sacco or Unaitas, offer emergency salary advance loans at better rates than shylocks. Have a plan B.
Understanding the KRA Penalties You Might Face
Even though it’s not your fault, KRA may still penalize you initially. Here’s what that looks like in Kenyan Shillings:
- Interest: 1% per month on the unpaid tax from the due date. On Ksh 10,000 unpaid for 6 months, that’s Ksh 600 in interest.
- Penalty: 5% to 20% of the tax due, depending on how late it is.
- Tax Arrears: The principal tax amount itself.
The good news? Once you prove you were an employee and that tax was deducted at source, KRA can waive penalties and interest and transfer the liability to your employer. But you must engage with them proactively.
Can You Pay the Tax Yourself and Claim It Back?
Technically, yes. You can pay the outstanding PAYE via iTax to stop the penalty clock. This is a drastic move, but it protects your KRA compliance status immediately.
Then, you would have to sue your employer in a small claims court or through the Labour Office to recover that money. It’s a longer, more stressful route. Only consider this if you have the cash and are preparing to leave the company anyway.
Long-Term Lessons: How to Avoid This in Future
Once bitten, twice shy. Make these checks a monthly habit, just like checking your M-Pesa statement.
- Monthly iTax Check: Every payday, log in and confirm the previous month’s PAYE is posted. It takes 2 minutes on your phone.
- Scrutinize Your Payslip: Know what every deduction means. Ask if something looks off.
- Ask During Interviews: When joining a new company, casually ask, “How timely is the PAYE remittance to KRA?” A legitimate employer will answer confidently.
Conclusion
Discovering your employer has not been remitting your PAYE to KRA is stressful, but inaction is the worst choice. Your path is clear: gather evidence, confront professionally, and escalate to KRA and the Labour Office if needed. Remember, your tax compliance is your personal responsibility in the eyes of the law.
Protect your future. Don’t let your employer’s mistake become your financial crisis. Start by logging into iTax right now and checking your status. Share this article with a colleague who might be in the same silent struggle.