The Kenya Revenue Authority (KRA) has introduced a new Automated Payment Plan (APP) to ease the financial burden on taxpayers unable to clear their outstanding tax obligations in a single payment.
The digital solution will allow eligible Kenyans to pay off their principal tax, penalties, and interest in structured instalments over a specified period.
In a public notice published in the MyGov newspaper on Tuesday, the tax agency said the initiative is part of its broader effort to make tax compliance simpler and more accessible.
KRA said the APP is a system-driven feature that gives taxpayers greater flexibility in managing their liabilities while maintaining full transparency.
“The Kenya Revenue Authority (KRA) wishes to inform taxpayers and the general public that, as part of its ongoing commitment to enhance convenience and promote compliance, it is introducing a new Automated Payment Plan (APP) mechanism. This system-driven solution enables eligible taxpayers to settle outstanding tax liabilities, including principal tax, penalties and interest, through structured instalment,” the notice read in part.
According to the KRA, the plan was developed to address the growing need for a more humane and practical approach to tax settlements, especially for individuals and businesses still recovering from economic challenges.
KRA explained that to benefit from the new arrangement, applicants must first meet a few conditions. These include having a valid KRA PIN, being fully registered and compliant on the iTax platform, and ensuring their tax profile is up to date.
In addition, only taxpayers with confirmed liabilities recorded in KRA’s system will qualify. The liabilities must not be under active dispute, appeal, or litigation. KRA also emphasised that applicants must demonstrate a genuine inability or impracticality to clear the entire amount in one go.
Taxpayers will be required to submit a proposed instalment schedule through iTax or any other KRA-approved digital platform for review and validation.
The payment period under the Automated Payment Plan will not exceed six months. Once the schedule is approved, taxpayers will be expected to strictly follow the agreed instalment plan.
KRA clarified that the move is designed to support voluntary compliance by giving taxpayers a structured, transparent way to settle arrears without facing immediate enforcement. It is also expected to boost the Authority’s revenue collection efforts by reducing default cases and encouraging more Kenyans to come forward and regularise their tax status.
However, KRA cautioned that the plan is not an escape route for defaulters. The taxman made it clear that failure to stick to the agreed payment schedule could have serious consequences.
“Failure to adhere to the agreed payment schedule may lead to termination of the plan and trigger enforcement actions. These may include revocation of the Tax Compliance Certificate and other legal recovery measures,” KRA stated.
Once a payment plan is terminated, KRA can resort to measures such as garnishing bank accounts, instituting legal suits, or blocking access to certain government services that require proof of tax compliance.
The Authority noted that such enforcement actions will only be applied as a last resort when taxpayers fail to honour their obligations despite being given the chance to pay in instalments.
The agency encouraged taxpayers to report any instances of corruption or unethical conduct through the official contact numbers and email addresses provided.
According to KRA, transparency is at the heart of the APP initiative, ensuring that every transaction is digitally recorded and traceable.
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