Any person who receives employment income of more than KSh11,135 per month either as a full time employee or part time employee; thus any employer is required to deduct tax the tax due from any remuneration paid to their employees. For pay-as-you-earn purposes the term "employer" is to be taken, when necessary, to include:
- Any person having control of payment of remuneration
- Any agent, manager or other representative in Kenya of any employer who is outside Kenya
- Any paying officer of Government or other public authority
- Any trust or insurance company or other body or person paying pensions.
For pay-as-you-earn purposes an "employee" is defined as inclusive of any holder of an appointment of office, whether public, private or calling, for which remuneration is payable. It includes an employee who retires on pension and stays in Kenya where pensions received from a registered pension fund exceed Kshs. 15,000 per month.