Kenya Revenue Authority (KRA) has announced the roll-out of an Automated Payment Plan (APP) aimed at enhancing tax compliance and convenience for taxpayers in Kenya.
This new system-driven solution allows eligible taxpayers to settle outstanding tax liabilities, including principal tax, penalties, and interest, through structured instalments.
The KRA Automated Payment Plan (APP) is part of Kenya Revenue Authority (KRA) ongoing efforts to promote compliance and simplify tax settlement.
Through this Automated Payment Plan mechanism, taxpayers can manage their obligations more effectively without the financial strain of lump-sum payments.
What is Automated Payment Plan (APP)?
The Automated Payment Plan (APP) is a new initiative by the Kenya Revenue Authority (KRA) designed to make it easier for taxpayers to manage and clear outstanding tax liabilities.
This system-driven solution allows eligible taxpayers to pay their principal tax, penalties, and interest through structured instalments instead of a single lump-sum payment.
By integrating the Automated Payment Plan (APP) into KRA’s existing iTax system, taxpayers can conveniently apply online, propose instalment schedules, and track their payments digitally.
The main goal of the Automated Payment Plan (APP) is to enhance tax compliance while promoting financial flexibility among taxpayers.
It provides a practical way for individuals and businesses facing temporary financial constraints to remain compliant without facing enforcement actions.
The plan is subject to eligibility checks and system validation, ensuring that only genuine cases qualify. Overall, the APP reflects KRA’s commitment to leveraging technology to simplify tax administration and improve the taxpayer experience in Kenya.
Key details of the KRA Automated Payment Plan (APP)
The following are the key details of the KRA Automated Payment Plan (APP):
- Instalment Period: Up to six months
- Application Method: Via iTax or other designated KRA portals
- Eligibility: Subject to system validation and specific compliance requirements
Qualifications for the KRA Automated Payment Plan (APP)
To qualify for the KRA Automated Payment Plan (APP), taxpayers must:
- Possess a valid KRA PIN and be fully compliant with iTax registration and profile updates.
- Have a confirmed tax liability in the KRA system not under litigation or appeal.
- Demonstrate genuine inability to pay the full amount in a single payment.
- Submit a proposed instalment schedule for approval via iTax or KRA’s designated portals subject to system validation.
- Ensure the installment period does not exceed six months.
Important Note on the KRA Automated Payment Plan (APP)
The instalment period must not exceed six months. Failure to adhere to the agreed payment schedule may result in the termination of the plan and enforcement actions, which can include the revocation of the Tax Compliance Certificate (TCC) and other recovery measures.
The Automated Payment Plan (APP) represents a progressive step by Kenya Revenue Authority (KRA) towards a more efficient and taxpayer-friendly approach to managing tax liabilities, ensuring flexibility, transparency, and enhanced compliance across the board.
Matthews Ohotto is an Article Writer at CYBER.CO.KE and a Video Creator at Cyber Services Kenya (YouTube). He specializes in crafting insightful blog posts and video tutorials that empower Kenyans with practical digital skills and knowledge. Holding a Bachelor’s Degree in Business Information Technology (BBIT) from JKUAT, he combines technical expertise with creative insight.
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