Ulikua umesahau kabisa? Or maybe you saw the deadline reminders on Twitter, told yourself “nitafanya kesho,” and then kesho turned into a month later. We’ve all been there. The 30th of June came and went, and now you’re staring at your phone wondering if KRA will send the police to your door. Relax, breathe. Panicking won’t help, but acting fast will.
This article is your quick, no-nonsense guide for damage control. We’ll walk you through the immediate steps to take, the penalties you might face (in real KES figures), and how to get back on track with iTax. Whether you’re in Nairobi’s CBD, Mombasa, or upcountry, the process is the same. Let’s get you sorted.
Step 1: Stop the Panic, Log into iTax Immediately
Your first move is simple: log into your KRA iTax portal. Right now. Don’t wait for another “last reminder” SMS. The moment you miss the deadline, penalties and interest start accruing. Logging in shows you’re taking responsibility and gives you a clear picture of the damage.
Can’t remember your password? Use the ‘Forgot Password’ feature. If your account is locked, you’ll need to visit a KRA office for a reset. For most people, the iTax portal is accessible 24/7. Do this from your phone or laptop before you overthink it.
What You’ll See on Your iTax Dashboard
Once logged in, head straight to the ‘Returns’ section. You’ll see the pending return marked as overdue. The system might not immediately show penalties; they are often calculated and posted later. Your job now is to prepare and submit the actual return, even though it’s late.
Gather your documents: your P9 form from your employer (if you’re employed), bank statements, M-Pesa statements, and records of any business income. Having these ready makes the next step faster.
Step 2: File the Late Return & Face the Music (Penalties)
Here’s the reality check. Filing late isn’t free. KRA charges two main things: a penalty and interest. You need to understand these to know what you’re paying for.
- Late Filing Penalty: This is KES 10,000 for corporations or KES 2,000 for individuals if you file more than 30 days after the deadline. If you file within 30 days, it’s KES 1,000 for individuals.
- Interest on Unpaid Tax: If you owe tax, KRA charges interest at 1% per month on the unpaid amount, from the due date until you fully pay.
So, if you missed the June 30 deadline and owe KES 20,000 in tax, by August 1 you could be looking at KES 20,000 + KES 2,000 (penalty) + KES 400 (interest for ~2 months). That’s an extra KES 2,400 for the delay.
A Kenyan-Specific Reality: Dealing with KRA Offices & Timelines
Let’s talk about the on-ground experience. If you need to visit a KRA office—like the Times Tower in Nairobi, the Mombasa TRD, or your local Huduma Centre—go early. I mean, be there by 7:00 AM early. The queues, especially after a deadline, can stretch longer than a Thika Road traffic jam during rush hour.
Carry a physical copy of your national ID, your KRA PIN certificate, and all supporting documents. Dress for the weather. If you’re going during the long rains season, have an umbrella and expect slower traffic. Pro tip: Many Huduma Centres now have dedicated KRA desks and can be less chaotic than the main KRA buildings.
Also, know this: KRA’s system efficiency varies. Sometimes penalty charges take a few days to reflect after you file a late return. Don’t assume you’ve escaped them. Keep checking your iTax ledger. Set a reminder on your phone for one week later to confirm the final payable amount.
Step 3: Pay What You Owe (Including Penalties)
After you submit your late return, the system will generate an assessment. This is the total bill: your principal tax plus any penalties and interest. You must pay this full amount to be fully compliant.
Use the payment options provided. The easiest for most Kenyans is M-Pesa. Go to Lipa Na M-Pesa, select Pay Bill, enter KRA’s business number 572572, and use your KRA PIN as the account number. You can also pay via your bank’s internet banking or at a KRA-approved bank branch.
Keep the payment confirmation slip (SMS or receipt) like your life depends on it. It’s your proof in case of any system discrepancies. Screenshot it and email it to yourself.
What If You Can’t Pay the Full Amount Immediately?
Stuck? Don’t just ignore it. KRA has a Payment Plan option for taxpayers who genuinely can’t settle a large tax debt at once. You can apply for it through iTax under the “Debt Management” section.
You’ll need to propose a realistic monthly payment plan. Be honest about your income. It’s better to have an approved plan than to have KRA enforce collection by freezing your bank accounts or attaching your property—which they absolutely can and will do.
Step 4: Avoid This Mess Next Year – Set Reminders
Learn from this experience. The tax deadline is always June 30th for individuals. Mark it in your calendar now. Set multiple reminders: one for June 1st (to start gathering documents), one for June 15th (to start filing), and a final one for June 28th (to submit).
Use technology. You can file your return entirely from your phone. While in a matatu from Ngong to town, you can upload your P9. During a lunch break at work, you can review your figures. There’s no need for a last-minute rush.
- January: Download your bank/M-Pesa annual statement.
- May: Follow up with your employer for your P9.
- Early June: Log into iTax and start the return. Save it as a draft if needed.
Common Questions Answered (FAQs)
Q: Will I go to jail for filing late?
A: No, not for simply filing late. But consistently refusing to file or pay can lead to serious legal consequences, including prosecution.
Q: I have no income to declare. Do I still need to file?
A> Yes! This is called filing a Nil Return. It’s mandatory if you have a KRA PIN. It tells KRA you had no taxable income for that year. Failing to file a nil return also attracts the KES 2,000 penalty.
Q: What if I made a mistake on a previously filed return?
A> You can file an Amendment Return on iTax. It’s better to correct it yourself than for KRA to find it during an audit. Be aware that amendments can also trigger penalties if they result in more tax owed.
Conclusion: Act Now, Sleep Better
Missing the KRA tax returns deadline in Kenya is a common headache, but it’s a fixable one. The formula is straightforward: Log in, file the late return, pay the full assessed amount (tax + penalties), and set better reminders for next year. The longer you wait, the more the penalties and interest pile up, and the higher the risk of KRA taking stricter enforcement action.
Treat it like a stubborn pothole on your street—ignoring it only makes it worse. Address it head-on, clear the debt, and move on with peace of mind. Your future self will thank you. Got your story or tip on dealing with KRA? Share it in the comments below—your experience could help someone else navigate the process.