How to Pay KRA Penalties, Fines Via M-Pesa – iTax

All Kenyans must know that Filing tax returns is the obligation of every Kenyan with a KRA Pin and failure to do so prompts penalties for the citizen. The amount the Kenya Revenue Authority imposes on individuals who fail to file their yearly tax returns is completely exaggerated and not particularly justified if you ask me, but they’ve come up with somewhat dubious ways in the name of raising revenue that’s often a burden to a common Citizen. I’m not against paying taxes, but let’s face it; nowadays, being fined Ksh. 20,000 for just not filing your returns is completely over-reach. On the other hand, the amount we pay in taxes, whether you’ve imported an item or from your pay as you earn obligation, can be ridiculous, but that’s just how it is. I’ve come up with a simple step by step illustration on how Kenyans can use their Mpesa accounts to settle some of these charges without having to queue in a bank.

But fist; before we proceed, I’ve listed below some of the fines and penalties KRA often imposes on Kenyans.

What is the penalty for late filing and paying?

If you file your taxes after the June 30 deadline you will be charged with a fine of whichever is higher between 5 percent of the tax due or Kshs. 2,000.

Penalty on late payment is 5 percent of the tax due and a late payment interest of 1 percent per month on the unpaid tax until the tax is paid in full.

There are other Penalties charged on tax offences as well.

1. VAT – Value Added Tax is charged on the supply of taxable goods or services made or provided in Kenya and on the importation of taxable goods or services into Kenya.

Penalty on late filing: Whichever is higher between, Ksh 10,000 and 5 percent of the tax due.

Penalty on late payment: 5% of the tax due and a late payment interest of 1 percent per month on the unpaid tax until the tax is paid in full.

2. Failure to deduct PAYE, account for it or to submit a certificate upon request will attract a penalty of whichever is greater of, 25 percent of the amount of tax involved or Ksh 10,000.

3. Failure to deduct or pay Withholding Tax is charged 10 percent of the amount of the tax involved, up to a maximum of Kshs. 1 million.

4. Failure to pay Stamp Duty – Additional 5% of the payable duty for every quarter, from the date of the Instrument.

5. When one fails to pay tax on the due date an additional 20 percent of the tax involved is charged.

6. One will pay Ksh2,000 for any KRA PIN-related offense.

Kenya Revenue Authority in its bid to improve service delivery to its clients, the taxpayers, has implemented a mobile phone-based services platform, The KRA M-Service.

How to Pay your penalties on M-Pesa

You log in to your account

Navigate to “Payment” registration and follow prompts to the penalty

Fill in the details and download your electronic slip from your account at the KRA website

The E-slip will contain your ‘Payment Registration Number’ you’ll use this number as your account when paying via Mpesa

You then go to your M-Pesa Menu

Select Lipa na Mpesa

Choose Paybill and enter Kenya Revenue Authority (KRA) Mpesa Account Number: 572572 this will serve as the business number

For account number, enter the ‘Payment Registration Number’ generated in the portal.

Enter the amount due

Enter your Mpesa pin and press OK

You will receive a transaction confirmation message from M-Pesa.

You will receive a message from KRA informing you that payment has been received.

List of Kenya Revenue Authority (KRA) Fines and Penalties;

• Enforced registration – default penalty of Ksh. 100,000
• For not registering, you can be fined up to Ksh. 20,000 or face imprisonment for a term not exceeding 6 Months or both.
• Penalty for not filing your tax returns – Ksh. 20,000 plus additional tax of 2% compounded.
• Penalty for not properly keeping records – between Ksh. 10,000 to Ksh. 200,000
• Improper or fraudulent accounting – fine not exceeding Ksh. 400,000
• Failure to issue a tax invoice – Ksh. 10,000
• For not displaying certificate of registration – penalty of Ksh. 20,000 and fine not exceeding Ksh. 200,000.

How to Pay your Kenya Revenue Authority penalties for not filing tax returns via Mpesa;

• First, you’ll need to login to your kra account at https://itax.kra.go.ke/
• Navigate to “Payment” registration and follow prompts to the respective penalty
• Fill in the details and download your electronic slip from your account at the KRA website
• The E-slip will contain your ‘Payment Registration Number’ you’ll use this number as your account when paying via Mpesa
• Next, you can now go to your Mpesa Menu

• Select Lipa na Mpesa
• Then Paybill and enter Kenya Revenue Authority Mpesa Account Number: 572572 as business number
• Enter the Payment Registration Number as your account number
• Enter the amount you want to pay
• Enter your Mpesa pin and press OK
• You will receive a transaction confirmation message from Mpesa.

KRA M-Service
Kenya Revenue Authority in its bid to improve service delivery to its clients, the taxpayers, has implemented a mobile phone-based services platform, The KRA M-Service.

1. MPESAGo to M-pesa Menu >Lipa na M-PESA > Pay Bill
2. BUSINESS NUMBERFor Business no. enter the KRA Paybill Number 572572
3. ACCOUNT NUMBERFor account no. type a valid E-slip number as obtained via iTax
4. AMOUNTEnter the exact amount as per the e-slip
5. PINEnter your M-pesa PIN
6. PAYMENT DETAILSReview payment details and select OK to confirm your M-payment
7. MPESA MESSAGEM-pesa will send you a text message to confirm a debit on your mobile wallet float
8. KRA FEEDBACKYou will receive a message from KRA informing you that payment has been received

For further inquiries:

Call: 020 4999999 or 0711 099999

Email: call centre@kra.go.ke