Filing a return is half the job. The tax must also be paid, and a payment that does not reach the right account counts as unpaid. Most payment problems come from skipping one step: generating a Payment Registration Number (PRN). This guide takes you through the process and shows how to avoid the usual mistakes.

What a PRN is

A PRN is a unique number that identifies a particular tax liability. It tells KRA which taxpayer, which tax, which period and how much you are paying. When you pay using a PRN, the money is matched to the right obligation automatically. Paying without it, or with the wrong reference, can leave the payment "unallocated" for days or weeks.

Step 1: file the return first

For most taxes, you file the return on iTax and the system calculates the tax due. The return then gives the option to generate a payment slip, which contains the PRN. For tax that is not self-assessed, such as a payment on account, instalment tax or an assessment, you can generate a PRN from the payment registration option on iTax. See how to register on iTax.

Step 2: generate the PRN

  1. Log in to iTax with your PIN and password.
  2. Open the payment menu and choose to register a payment.
  3. Select the tax head (for example PAYE, VAT, income tax or Monthly Rental Income), the tax type, the period and the amount.
  4. Submit and download the payment slip, which shows the PRN and the amount.

Check the details carefully. A PRN for the wrong period or tax head is difficult to correct once paid. The KRA penalty calculator shows the extra amount if you are late, so add penalties and interest to the payment if they apply.

Step 3: choose how to pay

  • M-Pesa. Go to Lipa na M-Pesa, choose Pay Bill, enter KRA's business number 572572, use the PRN as the account number, enter the amount and confirm. Keep the SMS.
  • Bank. Take the payment slip to a bank that collects KRA taxes, or pay through internet or mobile banking by selecting the KRA payment option and entering the PRN.
  • Other mobile money and cards. Some providers and card options are offered through the payment gateway or bank partners.
  • Cheque and RTGS. Larger payments can be made by RTGS using the bank's details on the slip, with the PRN as the reference.

Pay the exact amount on the slip. If you pay less, the PRN may be partly paid and the balance will need a new PRN. If you pay more, the extra may be credited to your account, but confirm it.

Step 4: confirm the payment

After paying, check that the payment appears in your payment register or ledger on iTax. Payments from M-Pesa and banks are usually posted within minutes to a few hours, though some take longer. Save the bank slip, M-Pesa message and the iTax acknowledgement. For PAYE and VAT, payment must be received by the due date to avoid penalties: 9th for PAYE and 20th for VAT. See KRA penalties and interest explained.

Paying for different taxes

Common mistakes

  1. Paying with the wrong reference or the account number instead of the PRN.
  2. Paying before the return is filed, so the payment cannot be matched.
  3. Using a PRN more than once. Each PRN is for a single payment.
  4. Paying late in the evening on the deadline, when systems may take time to post.
  5. Mixing taxes in one payment.

What to do if a payment is unallocated

Gather the proof of payment, the PRN and the return details. Contact KRA through the support channels or the iTax help desk, and use the reference of the payment so the officer can trace it and allocate it. Do not pay twice. Keep a note of the date and the ticket number. Store everything in the tax payments log so you can show it quickly in a query.

Keep a record

Keep each slip and confirmation with the return in a folder by month, as described in how to keep business records for KRA. The KRA filing and payment calendar lists the due dates.

Frequently asked questions

Can I pay KRA with someone else's M-Pesa? Yes. The payment is tied to the PRN, not to the payer's phone number.

How long is a PRN valid? It is valid for a limited period. If it expires, generate a new one rather than paying with the old number.

Is there a fee for paying by M-Pesa? Paybill payments to KRA may attract a transaction charge depending on the provider's tariff. Check before paying large amounts.

What if I forgot to use the PRN? Contact KRA with proof of payment so they can allocate it. Do not pay again until you confirm what happened.