The Kenya Revenue Authority (KRA) issued a public notice dated 7th November 2025 announcing the roll-out of a new Automated Payment Plan (APP) intended to make it easier for businesses and individual (s) to settle outstanding tax liabilities. This initiative aligns with KRA’s ongoing efforts to enhance convenience, promote voluntary compliance, and streamline taxpayer services.
What Is the Automated Payment Plan (APP)?
The APP is a system-driven instalment plan that allows eligible taxpayers to settle their outstanding tax liabilities including principal tax, penalties, and interest through structured agreed monthly instalments. The plan is designed to support taxpayers who are unable to clear their full tax liabilities in a single payment.
Eligibility Requirements
To qualify for the APP, one must meet the following conditions:
- Have a valid KRA PIN which is fully compliant with iTax registration and profile updates;
- Have a confirmed tax liability in the KRA system that is not currently under appeal or litigation;
- Demonstrate genuine inability or impracticality to settle the full amount in one payment;
- Submit a proposed instalment schedule via iTax or other approved KRA portals, which will be subject to system validation; and
- Ensure the instalment period requested does not exceed six months.
Consequences of Non-Adherence to agreed APP
Failure to adhere to the agreed instalment payment schedule may result in:
- Termination of the payment plan;
- Revocation of the Tax Compliance Certificate (TCC); and
- Initiation of enforcement measures such as agency notices, penalties, or other recovery actions.
Taxpayers are therefore encouraged to follow the approved schedule strictly to avoid disruptions or compliance challenges.
What This Means for You
The Automated Payment Plan offers taxpayers a structured, predictable, and convenient way to manage outstanding liabilities especially during cash-flow constraints. Businesses and individuals with overdue taxes should consider taking advantage of this new initiative to regularize their compliance status.
How We Can Support You
Our firm is available to assist you with:
- Reviewing your tax position to confirm eligibility for the APP;
- Preparing and submitting the instalment proposal on iTax;
- Advising you on and when the installment (s) fall due; and
- Supporting communication with KRA throughout the process.
If you have outstanding tax liabilities or need guidance on the new payment plan, please reach out to us through enquiries@mgkconsult.co.ke for support.