KSh 50,000 of tax paid 3 months late with a late return grows to KSh 56,500 with KRA penalties and interest.
How KRA penalties work
There are three separate charges. A late filing penalty applies if the return is filed after the deadline: 5% of the tax due or KSh 2,000 for individuals (KSh 20,000 for companies), whichever is higher. A late payment penalty of 5% of the unpaid tax applies once. Interest of 1% a month is charged on the unpaid tax until it is cleared.
Filing a nil or employment-only return late still attracts the KSh 2,000 minimum penalty, even when no tax is due.
Filing deadlines are moving
The Finance Act 2026 moves the individual return deadline from 30 June to 30 April, starting with returns for the 2026 income year filed in 2027. Plan for the earlier date to avoid the minimum penalty.
Rates used in this calculator
KRA penalties and interest
Late filing (individuals)
5% of tax due or KSh 2,000, whichever is higher
Late filing (companies)
5% of tax due or KSh 20,000
Late filing (PAYE)
25% of tax due or KSh 10,000
Late payment
5% of tax due
Interest
1% a month on unpaid tax
Frequently asked questions
What is the KRA penalty for filing returns late?
For individuals it is 5% of the tax due or KSh 2,000, whichever is higher. For companies the minimum is KSh 20,000. For PAYE returns it is 25% of the tax due or KSh 10,000, whichever is higher.
How much interest does KRA charge?
Interest is 1% per month on the unpaid tax, charged until the tax is paid.
Can KRA waive penalties?
Yes. You can apply for a waiver on iTax, and KRA periodically runs amnesty programmes that waive penalties and interest when the principal tax is paid.
When is the KRA filing deadline?
Individual returns for 2025 income were due by 30 June 2026. From the 2026 income year, the Finance Act 2026 moves the deadline to 30 April 2027.