Taxpayers unable to settle their outstanding principal tax in a single payment can apply for an Automatic Payment Plan through the Kenya Revenue Authority’s (KRA) iTax platform and clear eligible tax liabilities in instalments.
The arrangement provides taxpayers with an option to spread payments over time while meeting their outstanding principal tax obligations, according to guidance issued by KRA.
Under the programme, taxpayers can apply for a payment plan through iTax and, once approved, make payments towards the principal tax for periods up to 31 December 2025.
KRA has said taxpayers using the arrangement must settle the eligible principal tax in full by December 31, 2026. Once the principal tax is fully paid within the stipulated period, penalties and interest will be waived automatically, subject to the authority’s stated conditions.
How the plan works
The payment plan is designed for taxpayers who may face difficulty making a lump-sum payment to clear their outstanding principal tax.
Rather than requiring the entire eligible principal amount to be paid at once, taxpayers can seek approval to make payments in instalments.
The arrangement covers principal tax relating to periods up to December 31, 2025. The outstanding principal must subsequently be cleared in full by the end of 2026 for the automatic waiver of penalties and interest to apply.
This means taxpayers using the facility need to keep track of their instalment payments and ensure that the full eligible principal amount is settled within the deadline.
Applying through iTax
Taxpayers seeking the payment plan must submit their applications through the KRA iTax platform.
The application process requires taxpayers to log into their iTax accounts, select “Payment” and then choose “Apply for Payment Plan (New)”.
Applicants must complete the information required in the payment-plan application and submit it for approval.
Once the application has been approved, the taxpayer can generate a Payment Registration Number (PRN) and use it to make payments towards the principal tax.
KRA’s instructions require taxpayers to follow the iTax application process before making payments under the arrangement, meaning taxpayers should first obtain approval for the payment plan and then generate the relevant PRN.
Deadline for settlement
The key deadline under the arrangement is December 31, 2026, by which eligible taxpayers must have paid their principal tax in full.
KRA says penalties and interest will be waived automatically once the qualifying principal tax has been fully settled within the stipulated period.
Taxpayers with outstanding liabilities can therefore review their iTax accounts, determine the eligible principal tax due and apply for the payment plan if they cannot clear the amount in one payment.
The arrangement gives taxpayers a structured route for addressing eligible outstanding tax liabilities while placing the focus on settlement of the principal amount.
Those applying should keep records of their approved payment plan, PRNs and instalment payments to help monitor progress towards full settlement.
Taxpayers can access the iTax platform through KRA iTax and follow the payment-plan application instructions provided by the revenue authority.
