Home Business How to Pay Your Kenya Revenue Authority (KRA) Penalties,...

How to Pay Your Kenya Revenue Authority (KRA) Penalties, Taxes and Fines Using Mpesa

The amount the Kenya Revenue Authority imposes on individuals who fail to file their yearly tax returns is completely exaggerated and not particularly justified if you ask me, but they’ve come up with somewhat dubious ways in the name of raising revenue that’s often a burden to a common Citizen. I’m not against paying taxes, but let’s face it; nowadays, being fined Ksh. 20,000 for just not filing your returns is completely over-reach. On the other hand, the amount we pay in taxes, whether you’ve imported an item or from your pay as you earn obligation, can be ridiculous, but that’s just how it is. I’ve come up with a simple step by step illustration on how Kenyans can use their Mpesa accounts to settle some of these charges without having to queue in a bank.

But fist; before we proceed, I’ve listed below some of the fines and penalties KRA often imposes on Kenyans.

List of Kenya Revenue Authority (KRA) Fines and Penalties;

  • Enforced registration – default penalty of Ksh. 100,000
  • For not registering, you can be fined up to Ksh. 20,000 or face imprisonment for a term not exceeding 6 Months or both.
  • Penalty for not filing your tax returns – Ksh. 20,000 plus additional tax of 2% compounded.
  • Penalty for not properly keeping records – between Ksh. 10,000 to Ksh. 200,000
  • Improper or fraudulent accounting – fine not exceeding Ksh. 400,000
  • Failure to issue a tax invoice – Ksh. 10,000
  • For not displaying certificate of registration – penalty of Ksh. 20,000 and fine not exceeding Ksh. 200,000.

How to Pay your Kenya Revenue Authority penalties for not filing tax returns via Mpesa;

  • First, you’ll need to login to your kra account at https://itax.kra.go.ke/
  • Navigate to “Payment” registration and follow prompts to the respective penalty
  • Fill in the details and download your electronic slip from your account at the KRA website
  • The E-slip will contain your ‘Payment Registration Number’ you’ll use this number as your account when paying via Mpesa
  • Next, you can now go to your Mpesa Menu
  • Select Lipa na Mpesa
  • Then Paybill and enter Kenya Revenue Authority Mpesa Account Number: 572572 as business number
  • Enter the Payment Registration Number as your account number
  • Enter the amount you want to pay
  • Enter your Mpesa pin and press OK
  • You will receive a transaction confirmation message from Mpesa.

The same process applies to paying your taxes i.e. import taxes using the KRA Payment Registration Number’ you’ve been issued with. No need to queue at the bank, however you must note payments allowed via Mpesa must not exceed Ksh. 70,000 as this is the transaction limit.



Please enter your comment!
Please enter your name here

Itel unveils S16 series with a 6.6-inch display and 4000mAh battery during brand launch

Itel on a mission to boost its brand in Kenya and the continental Africa, has unveiled a range of devices in the...

TikTok, WeChat will be unavailable in the US app stores starting this Sunday 20th 2020

Looks like Trump is making good on his promise after all, after the US department of Commerce announced its intentions to restrict...

Expect PS5 in Kenya from November 2020, here is what you need to know before buying

Sony has finally put a price tag on its next gen gaming hardware – the Play Station 5, and we also know...

OPPO set to unveil OPPO Reno4 and OPPO Watch in Kenya, here is what you need to know

OPPO is planning to officially unveil the much anticipated Reno4 in Kenya on the 21st of September 2020. The launch event is...

How to transfer money from your I&M Bank account to MPESA using a USSD code on your phone

I&M Bank has a USSD service that allows customers to easily send money from their bank account to an MPESA registered user....

Apple unveils Apple watch series 6 with capability to measure blood oxygen level

Apple has officially announced its next sequel on the Apple watch lineup featuring a blood oxygen level measurement capability with design cues...

Global report by PwC shows digital factories taking lead in shaping manufacturing

A report by PwC has revealed how various industrial companies are investing in digital factories with a reported 6 percent having fully...

Huawei Y9a expected to launch in Kenya, packs a 64MP Quad-camera setup and a 6.63 display

Huawei mobile has announced its bringing the Y9a in Kenya, beefing-up it’s already popular lineup of the Y – series in the...