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.