The penalty for filing your KRA tax return late
Tax Procedures Act; Kenya Revenue Authority · sources read 2 Oct 2026
If you file your income tax return late, the penalty is 5% of the tax due or KSh 2,000, whichever is higher, so it's at least KSh 2,000 even when you owe no tax. Companies pay 5% or KSh 20,000, and employers filing PAYE late pay 25% or KSh 10,000, whichever is higher.
- Deadline
- 30 Apr 2027 Individual returns for 2026 are due by 30 April 2027 (KRA's page still says 30 June)
- Deadline
- 31 Dec 2026 Amnesty for penalties on periods up to 2025 closes
- Where
- Online on the KRA iTax portal
Steps
- File every return you missed on iTax. For years up to 2025 where you owe no tax, the late filing penalties are waived automatically once all your returns are in, under the amnesty running to 31 December 2026.
Watch out
- The KSh 2,000 minimum applies even if you had no income, because the law takes the higher of 5% or KSh 2,000.
- The amnesty only covers periods up to 31 December 2025. Penalties for 2026 onwards are fully payable.
- The deadline moved: from 1 January 2027 individuals must file by 30 April, not 30 June. KRA's page still says 30 June, so a 2026 return filed in May 2027 is late.
- 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.
- Turnover tax (TOT) return filed late: KSh 1,000.
- The 5% is worked out on what you still owe after tax already paid and withholding tax credits.
- KRA must send you a written penalty demand giving at least 30 days to pay.
Who this covers
- Individuals filing an income tax return, including nil returns
- Companies and partnerships filing income tax returns
- Employers filing monthly PAYE returns
Official sources (7)
- 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
- Offences & Penalties kra.go.ke · read 2 Oct 2026
- 2026 Tax Amnesty Programme at a Glance kra.go.ke · read 2 Oct 2026
- Finance Act, 2026 (No. 19 of 2026), Kenya Gazette Supplement No. 157 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