KRA Penalty Calculator 2026
Late with a return or a payment? See the late filing penalty, late payment penalty and interest before KRA's demand arrives.
Tax rules last verified: 6 October 2026Sources: KRA / Tax Procedures Act, 2015
| Item | Amount (KSh) |
|---|---|
| Tax due | 50,000.00 |
| Late filing penalty5% of tax due or KSh 2,000, whichever is higher | 2,500.00 |
| Late payment penalty5% of unpaid tax | 2,500.00 |
| Late payment interest1% a month × 3 months | 1,500.00 |
| Total payable | 56,500.00 |
KRA late filing penalties
| Return | Penalty (whichever is higher) |
|---|---|
| Income tax return — individual | 5% or KSh 2,000 |
| Income tax return — company or other non-individual | 5% or KSh 20,000 |
| PAYE return (employer) | 25% or KSh 10,000 |
| VAT return | 5% or KSh 10,000 |
Frequently asked questions
What is the penalty for filing KRA returns late?
For individuals, 5% of the tax due or KSh 2,000, whichever is higher — so even a late nil return costs KSh 2,000. Companies pay at least KSh 20,000, PAYE returns at least KSh 10,000 (or 25%), and VAT returns at least KSh 10,000.
What is the penalty for paying tax late?
A one-off late payment penalty of 5% of the unpaid tax, plus interest of 1% for every month or part of a month the tax stays unpaid.
Example: KSh 50,000 tax, filed and paid 3 months late?
Late filing KSh 2,500 + late payment KSh 2,500 + interest KSh 1,500 = KSh 6,500 on top of the KSh 50,000 tax.
Can KRA waive penalties and interest?
Yes. You can apply for a waiver on iTax, explaining why you were late. KRA has also run tax amnesty programmes that waive penalties and interest when the principal tax is paid. Waivers are not guaranteed.
When are KRA returns due?
Under the Finance Act 2026, from 2027 salaried (PAYE) employees file annual returns by 30 April instead of 30 June, and nil returns are due by 31 January. Returns for the 2025 year of income still follow the old 30 June date. PAYE is due by the 9th and VAT by the 20th of the following month.
Related calculators
Related Kaziiko resources
- KRA iTax returns filing guideFile on time and avoid penalties
- iTax nil returns guideEven with no income, file to avoid the KSh 2,000 penalty
- Tax Compliance Certificate guideNeeded for tenders and contracts
- Kenya tax & payroll articlesKaziiko blog
- Free KRA & tax resourcesGuides and templates
Behind on KRA returns?
Kaziiko experts file overdue returns, apply for penalty waivers and get you a Tax Compliance Certificate.
Get help with KRA →Sources & methodology
Calculation assumptions
- Late filing: the higher of the percentage of tax due or the fixed minimum for the return type.
- Late payment: a one-off 5% penalty plus simple interest of 1% per month or part of a month.
- Interest is not compounded. Any legal cap on total interest is not applied — check with KRA if interest exceeds the tax.
- Turnover tax, excise, withholding tax and offences other than late filing or payment are not covered.
Tax Procedures Act, 2015 penalties · last verified 6 October 2026.
This calculator provides an estimate for informational purposes and should not replace professional tax, legal or financial advice or official calculations.