KRA Late Filing Penalty and Interest Calculator Kenya 2026

Why penalties build up

Tax law in Kenya, mostly the Tax Procedures Act, charges penalties and interest when returns are late or tax is paid late. They are separate from the tax itself, and they can grow faster than people expect, because a late filing penalty is charged even if the return shows no tax due, and interest keeps running every month until the tax is paid.

The three charges

The calculator separates the charges so you can see what drives the total:

1. Late filing penalty. A penalty for filing the return after the due date. It is usually the higher of a percentage of the tax due and a fixed minimum amount, which is why a nil return filed late still costs something. The percentage and the minimum differ by tax: income tax for individuals, income tax for companies, PAYE, VAT, Monthly Rental Income tax and turnover tax each have their own settings.
2. Late payment penalty. A one-off percentage of the tax that was paid late.
3. Interest. A monthly rate on the unpaid tax, charged for each month or part of a month it stays unpaid. The calculator counts a part month as a full month.

A worked example

For income tax of KES 100,000 filed 30 days late and paid 45 days late, the late filing penalty is the higher of the percentage and the minimum, the payment penalty is one fixed percentage and interest runs for two months. The total comes to KES 12,000.00. A nil individual return filed one day late costs KES 2,000.00.

Using the calculator

Choose the tax, enter the tax due on the return, the number of days late filing and the number of days late paying. If you filed on time but paid late, set filing days to zero. The total shows the penalties and interest, and the amount you would owe in all. The rates used are listed on the page with their verification date.

Waivers and amnesties

KRA has the power to waive or reduce penalties and interest in some circumstances, and it has run amnesties from time to time that remove them when the principal tax is paid within a window. If you owe penalties, ask KRA whether an amnesty is open, and apply through iTax or at a KRA office. A genuine reason for lateness, such as a system failure or a death in the family, strengthens a waiver request.

How to avoid penalties

• Put the deadlines in a calendar: monthly returns by the 9th or the 20th depending on the tax, and the annual income tax return by 30 June.
• File on time even if you cannot pay, because the filing penalty is separate and avoids the largest charge.
• Make a payment arrangement with KRA if you cannot pay in full, and keep the written agreement.
• Reconcile your iTax ledger regularly, since mistakes in it also generate penalties.

Limits of the estimate

The percentages and minimums held for each tax are marked unverified until they are checked against the current Act and KRA notices. The calculator does not apply interest compounding, waivers or special cases such as penalties on understated tax. It gives an estimate for information only, so confirm the actual amount on your iTax ledger.

What to do when you owe penalties

First, file any outstanding returns, because the filing penalty is charged until the return is lodged. Next, check your iTax ledger to confirm the amounts, since mistakes happen and unmatched payments can inflate a balance. Then pay the principal tax, and ask in writing for the penalties and interest to be waived, giving your reasons and any evidence. If you cannot pay in full, propose an instalment plan and keep to it. Keep copies of every letter and payment confirmation.

Guides, tools and templates for this topic

Read next: Bank reconciliation step by step: match your books to your bank, KRA penalties and interest explained: what late filing and payment cost, The Affordable Housing Levy explained for employees and employers

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