Tax Penalties and Charges in Kenya
Guide to common KRA penalties, late filing charges, late payment interest, and how to avoid tax compliance problems in Kenya.
Tax Penalties and Charges in Kenya
KRA penalties can make a tax problem more expensive than the original tax. File on time, pay on time, and keep records that support what you declare.
Current filing season
Return year
2025
Filing window
1 January 2026 to 30 June 2026
Deadline
30 June 2026
These dates are generated from the current build year. Check current KRA notices for process rules, allowances, and validation requirements.
Current Filing Deadline
Use the generated deadline above for the annual individual income tax return filing season. KRA's current public notice says taxpayers who fail to file 2025 income tax returns by 30 June 2026 will be subject to default assessments under the Tax Procedures Act.
Common KRA Penalties
The summaries below are based on KRA's published tax offence guidance. Confirm the current amount with KRA if you are acting on a specific assessment, objection, or payment plan.
| Tax Type | Late Filing Penalty | Late Payment Penalty |
|---|---|---|
| Individual Income Tax | 5% of tax due or KSh 2,000, whichever is higher | 5% of tax due plus monthly interest |
| PAYE | 25% of tax due or KSh 10,000, whichever is higher | 5% of tax due plus monthly interest |
| VAT | 5% of tax due or KSh 10,000, whichever is higher | 5% of tax due plus monthly interest |
| Company or Partnership Income Tax | 5% of tax due or KSh 20,000, whichever is higher | 5% of tax due plus monthly interest |
KRA's penalty guidance commonly refers to interest at 1% per month on unpaid tax. Check your iTax ledger or KRA assessment for the exact calculation applied to your case.
How to Avoid Penalties
File on Time
Do not wait until the last day if you can avoid it. Portal traffic is heavier near the deadline, and unresolved P9, password, or validation problems can take time to fix.
Pay Any Tax Due Promptly
If your return shows tax due, generate the payment slip and pay through the official payment channels shown by iTax. Keep payment confirmation records.
File a Nil Return When You Had No Income
If you had no income but still have an Income Tax obligation, file a Nil return before the deadline. See How to file a Nil return on iTax.
Keep Supporting Records
Keep P9 forms, withholding tax certificates, income records, expense records, payment confirmations, and return receipts. They help if KRA asks for clarification or if you need to amend a return.
If You Are Already Late
- File the outstanding return as soon as possible.
- Pay tax due as soon as possible to reduce additional interest.
- Check your iTax ledger for penalties, interest, and default assessments.
- Contact KRA if you need clarification on an assessment, payment plan, or amendment.
Related Guides
- How to File KRA Tax Returns in Kenya.
- ITR for Employment Income Only walkthrough.
- How to file a Nil return on iTax.
- How to reset your iTax password.
KRA Support
- Phone: 020 4 999 999 or 0711 099 999.
- Email: callcentre@kra.go.ke.
- Portal: KRA iTax.
Please Note
Free Information Service: The Online Kenyan provides these guides as a free public service. We do not sell any services, charge fees, or offer paid consultations related to these processes.
Do Your Research: While we strive to keep information current and accurate, government processes and requirements can change. We recommend verifying the latest procedures, requirements, and fees directly with the relevant government office or official website before proceeding.
Official Channels Only: For the most up-to-date and accurate information, always use official government websites, offices, and authorized service centers for your applications.