Penalty and interest when you pay KRA tax late
Tax Procedures Act; Kenya Revenue Authority · sources read 2 Oct 2026
If you pay tax after the due date, you owe a 5% late payment penalty plus interest of 1% a month (or part of a month) on the unpaid tax until it's paid. The interest is simple interest and can never add up to more than the tax itself.
- Deadline
- 31 Dec 2026 Amnesty on penalties and interest for periods up to 2025 closes
- Where
- Online on the KRA iTax portal; requests for more time to pay in writing to the KRA Commissioner
Steps
- Pay as soon as you can, since interest grows every month. Generate a payment slip on iTax and pay at a bank or by M-Pesa paybill 222222.
- If you can't pay on time, apply in writing to KRA for more time or to pay in instalments.
- For tax owed for periods up to 2025, pay the principal tax in full by 31 December 2026 and the penalties and interest on it are waived.
Watch out
- Getting more time or a payment plan doesn't stop the interest. It still counts from the original due date.
- Interest stops growing once it equals the tax you owe; it can't go above it.
- The amnesty doesn't cover tax, penalties or interest for 2026 onwards.
- Outside an amnesty, penalties and interest are only waived when they were caused by an iTax system error, a duplicate charge or wrong registration of your tax obligations. The old 'apply for remission' route was removed in 2023.
Who this covers
- Anyone who pays a tax after its due date, individuals and businesses alike
- Employers who remit PAYE late
Official sources (6)
- Tax Procedures Act, 2015 (No. 29 of 2015), Revised Edition 2021 kra.go.ke · read 2 Oct 2026
- Individual Income Tax kra.go.ke · read 2 Oct 2026
- More about PAYE (FAQ) kra.go.ke · read 2 Oct 2026
- 2026 Tax Amnesty Programme at a Glance kra.go.ke · read 2 Oct 2026
- Tax Procedures Act (Cap. 469B), version of 1 September 2026 new.kenyalaw.org · read 2 Oct 2026
- iTax portal itax.kra.go.ke · read 2 Oct 2026