How to Get an Instalment Tax Certificate from KRA iTax

Getting an instalment tax certificate from KRA iTax means your business can pay taxes in smaller, manageable chunks rather than one large lump sum. The process isn't complicated, but it does require you to meet specific criteria and submit proper documentation through the KRA's online platform at itax.kra.go.ke.

To qualify for an instalment tax certificate, your business must owe KSh 100,000 or more in tax. The KRA won't issue certificates for smaller amounts. You also need to demonstrate that you can actually pay the instalments—simply owing money isn't enough. The tax authority wants proof that you have a genuine capacity to settle your obligation over the agreed period, typically spread across three to six months depending on the amount owed.

Steps to Apply for an Instalment Tax Certificate

Log into your iTax account using your KRA PIN and password. If you don't have an iTax account yet, you'll need to register first through the main portal. Once logged in, navigate to the tax obligations section where you'll see your outstanding tax liability displayed.

Look for the option labeled "Apply for Instalment Plan" or "Tax Instalment Certificate." The exact wording varies slightly depending on your tax type—whether you're a PAYE employer, self-employed person, or VAT-registered business. Click on this option to begin your application.

You'll be asked to provide several details: the total amount of tax you owe, your proposed payment schedule, and supporting documents. The supporting documents typically include your audited financial statements, bank statements showing your business activity, and a letter explaining why you need the instalment arrangement. This is where many applications stumble. The KRA wants concrete evidence that you're not simply avoiding payment.

Submit your application directly through iTax. There's no fee for applying, though some businesses use compliance experts to strengthen their applications if they're uncertain about documentation. After submission, the KRA typically responds within 5-10 working days, though delays do happen.

What Happens After Approval

Once approved, you'll receive a formal instalment tax certificate through iTax. Download and save this document—you'll need it for your records and potentially to show tax officials if audited. The certificate specifies each payment due date and amount.

Make payments through M-Pesa, bank transfer, or over the counter at KRA offices on the exact dates listed. Missing even one instalment can result in the entire certificate being cancelled, pushing the full remaining balance due immediately. The KRA doesn't offer much flexibility here.

If your circumstances change and you genuinely cannot meet a payment, contact the KRA before the due date, not after. Request a modification to your plan rather than simply defaulting. Many businesses find that proactive communication prevents the situation from escalating into penalties and interest charges.

For complex tax situations or if your initial application gets rejected, consulting KRA tax experts on Kaziiko can help you understand why and strengthen a reapplication.

Frequently Asked Questions

Can I apply for an instalment certificate if I'm just starting my business?

The KRA may approve your application if you owe the minimum amount and can show genuine business income or capital. New businesses without significant tax history face stricter scrutiny, and approval isn't guaranteed. Your supporting documents need to be especially thorough.

What happens if I miss a payment on my instalment plan?

The entire certificate is typically cancelled, and the full remaining tax balance becomes due immediately. Penalties and interest also accrue on top of the original debt. Contact the KRA immediately if you anticipate a missed payment to request a plan modification.

How long does the KRA take to approve an instalment certificate application?

Standard processing takes 5-10 working days from submission through iTax. However, if the KRA requests additional documentation or finds issues with your application, this timeline extends. Check your iTax inbox regularly for any requests for clarification.

Can I pay my instalments through M-Pesa instead of bank transfer?

Yes, M-Pesa payments are accepted for instalment plans. The KRA's M-Pesa payment details are provided in your certificate. However, ensure you use the exact reference number to avoid the payment being misallocated to your general tax account.