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Explainer: How the new KRA automated payment plan works
11th November, 2025 10:45 AM
The Kenya Revenue Authority (KRA) has launched an automated payment system aimed at simplifying the settlement of tax liabilities and enhancing compliance among taxpayers.
In a notice on November 11, 2025, the tax man announced the introduction of a new Automated Payment Plan (APP) mechanism.
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The tax authority said the APP is part of the ongoing efforts to enhance convenience and compliance.
“The Kenya Revenue Authority 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,” reads part of the notice.
“This system-driven solution enables eligible taxpayers to settle outstanding tax liabilities, including principal tax, penalties, and interest, through structured instalments.”
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But what are the conditions that the KRA has put in place for someone to meet or even the impact of breaching any of the thresholds?
Requirements to Qualify
To qualify for the APP, taxpayers must meet the following conditions:
Firstly, one must possess a valid KRA PIN and be fully compliant with iTax registration and profile updates.
Have a confirmed tax liability in the KRA system that is not subject to active litigation or appeal
Moreover, KRA says that one must demonstrate genuine inability or impracticality to settle the full liability in a single payment.
Submit a proposed instalment schedule via iTax or other designated KRA portals, subject to system validation.
Lastly, the taxpayer must ensure the instalment period does not exceed six months.
KRA taxpayer’s penalty
The tax man has warned that failure to adhere to the agreed-upon payment schedule may result in termination of the plan and trigger enforcement actions.
These may include revocation of the Tax Compliance Certificate and other legal measures,” KRA stated.
The authority encouraged taxpayers to report corruption through their contacts and mail addresses.
The new APP is expected to provide relief to many Kenyans who have struggled to meet tax obligations while ensuring the Authority continues to maintain transparency and accountability in tax collection.
At the same time, the platform strengthens the KRA commitment to transparency and accountability.
Through digital records, automated tracking, and real-time reporting, the Authority can ensure that tax collection processes are open, traceable, and verifiable, thereby minimising errors or opportunities for malpractice.
This dual approach not only facilitates compliance but also enhances public confidence in the integrity of the tax system.
