Kenya Revenue Authority (KRA) has introduced a Payment Plan option called Automated Payment Plan to help taxpayers settle their outstanding tax liabilities more conveniently.
This initiative allows both individuals and businesses to pay off their tax arrears in manageable installments instead of a lump sum, making it easier to remain tax compliant without financial strain.
However, to fully benefit from this arrangement, taxpayers must follow certain procedures and comply with all the outlined requirements.
Below is a detailed guide on how the KRA Payment Plan works, how to apply, and the essential steps to generate your Payment Registration Number (PRN) for payment processing.
DO YOU NEED OUR HELP?
WE ARE HERE TO ASSIST YOU
KRA PIN CHANGE OF EMAIL ADDRESS
What is KRA Payment Plan?
A KRA Payment Plan is an agreed arrangement between a taxpayer and the Kenya Revenue Authority (KRA), allowing the taxpayer to clear outstanding tax debts over a specified period.
It is particularly beneficial to businesses and individuals who may be experiencing temporary cash flow challenges but are committed to settling their tax obligations.
The plan helps prevent penalties, enforcement actions and interruptions in obtaining crucial services such as a Tax Compliance Certificate (TCC). It is a practical solution for maintaining compliance while managing financial commitments responsibly.
Important Guidelines Before Applying for a KRA Payment Plan
To avoid inconvenience or delays in approval, taxpayers are advised to take note of the following critical points before submitting their KRA Payment Plan applications:
-
Include All Valid Outstanding Debts
Ensure that all your valid outstanding tax debts are fully captured in your payment plan application. Omitting any valid debt may result in significant setbacks, including: Being denied a Tax Compliance Certificate (TCC), Ineligibility to apply for tax refunds and Inability to lift an active agency notice on your account.
-
Handle Invalid Debts Appropriately
If you have any invalid debts (for instance, unposted payments or cases under objection), you must write an official letter to the Commissioner (MST/LMT) clearly explaining the nature of the debt.
Attach all supporting documentation, such as unposted payment slips, objection decisions, or relevant correspondence, and send the letter and attachments to: [email protected]
Failure to address invalid debts properly could delay the approval of your payment plan or affect your compliance status.
-
Adhere Strictly to the Payment Plan Agreement
Once a payment plan has been approved, strict adherence is mandatory. Any failure to honor the agreed installments will lead to: Automatic cancellation of the payment plan and Immediate enforcement measures, including penalties, interest, and debt recovery actions.
Therefore, it is crucial to ensure timely payments according to the agreed schedule to maintain the validity of your arrangement.
DO YOU NEED OUR HELP?
WE ARE HERE TO ASSIST YOU
KRA PIN CHANGE OF EMAIL ADDRESS
How to Generate KRA Payment Registration Number (PRN)
After your payment plan is approved or if you wish to make tax payments, you must generate a KRA Payment Registration Number (PRN) on the iTax (KRA Portal).
The PRN acts as a reference code for all your tax payments and enables you to pay through KRA partner banks or via M-Pesa Paybill 222222. Here is how to generate your PRN:
-
Step 1: Log in to iTax
Visit the official KRA iTax portal at https://itax.kra.go.ke and log in using your PIN and password.
-
Step 2: Navigate to Payment Registration
Once logged in, go to the main menu and select: Payment → Payment Registration
-
Step 3: Select the Relevant Tax Head and Sub-Head
Choose the applicable Tax Head (e.g., Income Tax, VAT, PAYE) and the correct Sub-Head that corresponds to your specific tax obligation.
-
Step 4: Enter Your Payment Details
Provide the required details, including the payment type, period and amount you wish to pay.
-
Step 5: Submit and Generate the PRN Slip
Click Submit to generate your Payment Registration Number (PRN). Download or print the PRN slip, which contains all payment details.
You can now use the PRN to make your payment through: Any KRA partner bank or M-Pesa Paybill 222222, using the PRN as the Account Number.
Benefits of the KRA Payment Plan
The KRA Payment Plan provides several advantages for taxpayers, including:
- Flexibility: Allows payment of tax arrears in manageable installments.
- Compliance: Helps taxpayers maintain good standing and eligibility for Tax Compliance Certificates (TCCs).
- Reduced Stress: Avoids sudden financial pressure from lump-sum tax payments.
- Avoidance of Enforcement Actions: Prevents penalties, interest accumulation and debt recovery measures.
- Improved Relationship with KRA: Demonstrates good faith and cooperation with the authority.
DO YOU NEED OUR HELP?
WE ARE HERE TO ASSIST YOU
KRA PIN CHANGE OF EMAIL ADDRESS
The KRA Payment Plan is an essential relief mechanism for taxpayers seeking to meet their obligations without undue financial pressure. However, compliance with the plan’s terms is non-negotiable.
Taxpayers are urged to include all valid debts, properly address any invalid ones, and strictly follow the payment schedule. Failure to honor the plan will automatically result in cancellation and the application of enforcement measures.
Always ensure timely payments through your generated Payment Registration Number (PRN), and communicate promptly with KRA through [email protected] in case of any clarification or dispute.
By managing your taxes proactively and responsibly, you not only remain compliant but also contribute to Kenya’s broader goal of economic growth and fiscal stability.
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.
KRA PIN REGISTRATION
Are you looking for KRA PIN Registration services?
We are here and ready to assist you today.
Submit your service request online now and let us handle everything for you.
Receive your KRA PIN Certificate via Email Address and WhatsApp in a few minutes.
KRA PIN RETRIEVAL
Are you looking for KRA PIN Retrieval services?
We are here and ready to assist you today.
Submit your service request online now and let us handle everything for you.
Receive your KRA PIN Certificate via Email Address and WhatsApp in a few minutes.
KRA PIN UPDATE
Are you looking for KRA PIN Update services?
We are here and ready to assist you today.
Submit your service request online now and let us handle everything for you.
Receive your KRA PIN Certificate via Email Address and WhatsApp in a few minutes.
KRA PIN CHANGE OF EMAIL ADDRESS
Are you looking for KRA PIN Change of Email Address services?
We are here and ready to assist you today.
Submit your service request online now and let us handle everything for you.
Receive your KRA PIN Certificate via Email Address and WhatsApp in a few minutes.
