The Kenya Revenue Authority (KRA) requires all taxpayers to file their tax returns by June 30 every year. However, missing this deadline comes with consequences, as KRA automatically charges penalties and interest on late returns or unpaid taxes.
Clearing tax penalties is not optional. Failure to do so locks you out of vital services such as obtaining a tax compliance certificate, which is often required for job applications, tenders, or government services.
Offences and Penalties
KRA imposes strict fines for tax offences. Below are some of the common offences and their penalties:
| Offence | Penalty |
|---|---|
| Late filing of Pay-As-You-Earn (PAYE) | 25% of the tax due or Ksh 10,000, whichever is higher |
| Late payment of PAYE tax | 5% of the tax due + 1% interest per month |
| Failure to deduct Withholding VAT / Withholding Rental Income Tax | 10% of the tax is involved |
| Late payment of Withholding Tax (Income, VAT, Rental) | 5% of the tax due |
| Late filing of Monthly Rental Income (MRI)Returns | Individuals: 5% of tax due or Ksh 2,000 (whichever is higher) Non-Individuals: 5% of tax due or Ksh. 20,000 (whichever is higher) |
| Late payment of MRI | 5% of the tax due + 1% interest per month |
| Late payment of Stamp Duty | 5% of the duty payable |
| Late filing of Excise Duty Return | 5% of tax due or Ksh 10,000, whichever is higher |
| Late payment of Excise Duty Tax | 5% of the tax due + 1% interest per month |
| Late filing of VAT Return | 5% of the tax due or Ksh 10,000, whichever is higher |
| Late payment of VAT tax | 5% of the tax due + 1% interest per month |
| Late filing of Income Tax (Company/Partnership Returns) | 5% of the tax due or Ksh 20,000, whichever is higher |
| Late payment of Income Tax for Non-Individuals | 5% of the tax due + 1% interest per month |
| KRA PIN-related offences | Ksh 2,000 per offence |
Also Read: How Kenyans Can Apply for a Refund from KRA After Paying Excess Tax
How to Pay KRA Penalties
KRA has made it easier for taxpayers to clear penalties through the iTax portal, mobile money, or banks.
Step 1: Log in to iTax
- Visit iTax.
- Enter your KRA PIN, password, and answer the security question.
Step 2: Generate a Payment Slip (PRN)
- On the iTax homepage, go to Payments → Payment Registration.
- Select the tax head (Income Tax, VAT, PAYE, etc.).
- Under sub-head, choose Penalty & Interest.
- Fill in the relevant tax period.
- Submit and generate a Payment Registration Number (PRN).
- Download and print the payment slip.
Also Read: KRA Scraps Manual Tax Return Filing for Employed Kenyans
Step 3: Make the Payment
KRA advises taxpayers to use the PRN as the account number when paying. You can pay via mobile money (M-Pesa) using PayBill number 222222:
- Enter PayBill number: 222222.
- Account number: Enter the PRN.
- Amount: As indicated on the PRN.
- Enter your M-Pesa PIN and send.
Alternatively, dial *222#, select “Pay KRA Bill,” enter the PRN, choose M-Pesa, and complete the process.
Step 4: Confirm Payment
- Log back into iTax.
- Go to Payment → Consult Payment Status.
- Enter your PRN to verify if the penalty has been cleared.
For assistance, taxpayers can contact KRA via 020-4-999-999, 0711-099-999, or email [email protected]
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