How to Pay KRA Penalties via M-Pesa

Understanding KRA Penalties in Kenya

The Kenya Revenue Authority (KRA) mandates all registered taxpayers to comply with tax regulations. Failure to meet these obligations results in financial penalties, which vary depending on the nature of the tax offense. Below is a breakdown of common penalties imposed by KRA:

1. PAYE Non-Compliance

• Offense: Failure to deduct, account for, or submit PAYE certificates
• Penalty: 25% of the tax amount or Ksh 10,000 (whichever is higher)

2. Withholding Tax Default

• Offense: Failure to deduct or remit withholding tax
• Penalty: 10% of the tax due (capped at Ksh 1 million)

3. Stamp Duty Late Payment

• Offense: Delayed Stamp Duty payment
• Penalty: Additional 5% per quarter from the due date

4. Excise Duty/VAT Default

• Offense: Late or unpaid Excise Duty/VAT
• Penalty: 5% of the tax due or Ksh 10,000 (whichever is higher)

5. Late Tax Payment

• Offense: Missing tax payment deadlines
• Penalty: 20% of the outstanding tax

6. Late Annual Returns Filing

• Offense: Failure to submit annual returns on time
• Penalty: 5% of the normal tax or Ksh 10,000

7. KRA PIN Violations

• Offense: PIN-related offenses
• Penalty: Ksh 2,000 per violation

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Step-by-Step Guide to Paying KRA Penalties via M-Pesa

Follow these simple steps to settle your KRA penalties conveniently using M-Pesa:

Step 1: Log into Your KRA iTax Portal

• Visit https://itax.kra.go.ke/
• Enter your KRA PIN and password to access your account.

Step 2: Generate a Payment Registration Number (PRN)

• Navigate to Payments > Payment Registration
• Fill in the required details (tax obligation, penalty amount, etc.)
• Submit the form and download the E-slip, which contains your PRN.

Step 3: Make Payment via M-Pesa

1. Open your M-Pesa menu on your phone.
2. Select Lipa na M-Pesa > Paybill.
3. Enter the following details:
   • Business No: 572572
   • Account No: Your PRN (from the E-slip)
   • Amount: The penalty amount due
4. Enter your M-Pesa PIN and confirm the transaction.
5. You will receive an SMS confirmation from M-Pesa and KRA.

Alternative Payment Method: Bank Deposit

• Present the E-slip at any KRA-approved bank.
• Deposit the penalty amount using the PRN as the reference.

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Need Help? Contact KRA Support

For inquiries or assistance, reach out to KRA via:

• Twitter: @KRACare
• Phone: 0711 099 999 / 0711 499 999

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