Consultancy and 5% WHT: Separating Professional Fees From PAYE Payroll

Through 2025, hybrid workforces became normal: permanent staff on PAYE, plus consultants and professionals on withholding tax. The mistake many firms still make is dumping both into one “salary” column.

The 5% professional fees rule in practice

For consultancy-style earnings in World Ledgers, WHT is applied at 5% when the consultancy total is above KES 24,000. Below that threshold, WHT is not deducted. That keeps small one-off fees simple while larger engagements stay compliant.

Why separation matters

• Different remittance returns
• Different payslip / payment advice formats
• Different treatment for benefits and deductions
• Cleaner audits when KRA asks for the trail

Try the free WHT calculator, then process consultancy alongside statutory payroll in HRM.