Miss a KRA deadline and a 5% late payment penalty plus 1% monthly compounding interest applies, with a separate late filing penalty if the return was also filed late. Calculate your total liability here.
Miss a KRA deadline and two separate charges can start accruing: a one-time late payment penalty on the unpaid tax, and interest that compounds every month the balance stays unpaid. If you also filed the return late, a third charge — the late filing penalty — applies on top, and its size depends heavily on which tax you're dealing with. This calculator works out all three together from your tax due, due date, and payment date.
How Is KRA's Late Payment Penalty Calculated?
KRA charges a flat 5% one-time penalty on any tax paid after its due date, under the Tax Procedures Act 2015. This rate is the same whether the unpaid amount is Income Tax, VAT, or PAYE — it applies once, regardless of how many months the payment ends up being late.
How Is KRA's Late Payment Interest Calculated?
On top of the 5% penalty, KRA charges interest at 1% per month, compounding monthly, on the outstanding tax balance — charged for every month or part of a month the tax remains unpaid. Because it compounds, a 12-month-old debt owes noticeably more than 12% simple interest: each month's interest is added to the balance before the next month's interest is calculated. This calculator applies exactly that compounding, month by month, from your due date to your payment date.
What Is the Late Filing Penalty, and How Is It Different?
Late filing and late payment are charged separately — you can file a return on time but pay late (only the payment penalty applies), or pay on time but file late (only the filing penalty applies). The late filing penalty is the higher of a fixed minimum or a percentage of the tax due, and both figures vary sharply by tax head: KES 2,000 or 5% for individual Income Tax, KES 20,000 or 5% for company Income Tax, KES 10,000 or 5% for VAT, and a much steeper KES 10,000 or 25% for PAYE. Tick "Return was also filed late" only if the return itself missed its filing deadline, separately from when the tax was paid.
Kenya's 2026 Tax Amnesty — Check This Before You Pay
If your tax debt relates to a period on or before 31 December 2025, it may not be worth paying penalties and interest on it at all right now. The Finance Act 2026 reintroduced a tax amnesty running 1 July to 31 December 2026 that gives a 100% waiver of penalties and interest on principal tax debts accrued up to that cutoff, provided the principal itself is paid in full — either as a lump sum or through an approved iTax payment plan — by 31 December 2026. This calculator flags when your due date falls inside the amnesty window so you know to check iTax before paying penalties you may not owe.
How Do I Use the KRA Penalty & Interest Calculator?
Select the tax type, enter the tax due (principal), the original due date, and the date you plan to pay (or already paid). Tick "Return was also filed late" if the return itself was filed after its deadline. The calculator shows the late payment penalty, the late filing penalty (if applicable), the compounded interest, and the total amount payable — with a month-by-month interest breakdown available under "Show working."
Verify with KRA: This calculator applies the penalty and interest rates set out in the Tax Procedures Act 2015. Specific assessments, waivers, and the 2026 Tax Amnesty terms can change your actual liability, so confirm your exact balance on iTax or KRA's official guidance before making a payment.
What is the KRA late payment penalty rate?
KRA charges a one-time penalty of 5% of the unpaid tax under the Tax Procedures Act 2015, applied once regardless of how many months the payment ends up being late.
How is KRA's late payment interest calculated?
Interest accrues at 1% per month, compounding monthly, on the outstanding tax balance — charged for every month or part of a month the tax remains unpaid, from the day after the due date until it's cleared.
Is the late filing penalty the same as the late payment penalty?
No. They're charged separately: the late payment penalty (5%) applies when tax is paid after its due date, while the late filing penalty applies when the return itself is filed late. The late filing penalty is the higher of a fixed minimum or a percentage of tax due, and both vary by tax type — notably PAYE, at 25% of tax due or KES 10,000, whichever is higher.
Does Kenya's 2026 Tax Amnesty cover my KRA penalties?
If your tax debt relates to a period on or before 31 December 2025, the Finance Act 2026 amnesty (1 July – 31 December 2026) waives 100% of penalties and interest, provided the principal tax is paid in full — as a lump sum or an approved payment plan — by 31 December 2026. Check iTax before paying penalties on an older debt.