The Kenya Revenue Authority (KRA) has unveiled a new system designed to help Kenyans clear tax arrears in easy instalments.
In a notice dated Friday, November 7, 2025, the Authority announced the rollout of the Automated Payment Plan (APP), which allows taxpayers to settle outstanding tax liabilities in structured instalments.
The initiative aims to make tax payments more convenient while promoting compliance among individuals and businesses struggling to settle their dues in full.
“Kenya Revenue Authority (KRA) wishes to inform taxpayers and the general public that, as part of its ongoing commitment to enhance convenience and promote compliance, it is introducing a new Automated Payment Plan (APP) mechanism.
This system-driven solution enables eligible taxpayers to settle outstanding tax liabilities, including principal tax, penalties, and interest, through structured instalments,” read the notice.
KRA to Roll Out Automated Payment Plan for Tax Liabilities
To qualify for the Automated Payment Plan, taxpayers must:
- Possess a valid KRA PIN and have an updated iTax profile.
- Have a confirmed tax liability that is not under active litigation or appeal.
- Demonstrate an inability to pay the full amount in a single instalment.
- Submit a proposed instalment schedule via iTax or other designated KRA portals for system validation.
- Ensure the repayment period does not exceed six months.
Also Read: KRA to Introduce New Changes on Income Tax Returns Starting January 2026
KRA warned that failure to comply with the agreed payment schedule will result in termination of the plan and may trigger enforcement actions, including revocation of Tax Compliance Certificates and other recovery measures.
Taxpayers seeking clarification can contact the KRA Call Centre at +254 (020) 4 999 999, +254 (0711) 099 999, or via email at [email protected].
Authority Set to Begin Validation of Income and Expenses in Tax Returns
Earlier, the Authority announced major changes affecting income tax returns for Kenyans.
In a notice dated November 7, 2025, KRA stated that it will begin validating income and expenses declared in both individual and non-individual income tax returns starting January 1, 2026.
According to the notice, the validation will rely on three key data sources:
- TIMS/eTIMS invoices
- Withholding income tax gross amounts
- Import records from customs systems
The process will take place upon submission of the 2025 year of income/accounting period return via the iTax platform.
The notice stressed that all declared income and expenses must be supported by valid electronic tax invoices, which must be correctly transmitted with the buyer’s PIN, where applicable.
Also Read: KRA Announces New Cargo Clearance Rules Affecting Importers
This requirement is subject to exceptions provided under Section 23A of the Tax Procedures Act, Cap 469B, and the Tax Procedures (Electronic Tax Invoice) Regulations, 2024.
KRA encouraged taxpayers to request TIMS/eTIMS schedules of their current annual income and expenses from their designated account managers.
“KRA invites feedback and insights from taxpayers and stakeholders to facilitate a smooth and effective implementation of this validation process,” the notice read.
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