Missing a KRA deadline triggers automatic penalties and compounding interest — with no warnings, no grace periods, and no appeals for lateness itself. This guide gives you every KRA tax deadline for 2026, the consequences of missing each one, and a practical checklist to stay ahead.
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Income Tax — 2025 Year of Income
These are the two critical income tax dates for the financial year ended 31 December 2025:
- Tax payment deadline: 30 April 2026 — if you owe income tax for 2025 (or instalments for 2026), pay by this date. Tax paid after 30 April attracts 2% monthly interest on the outstanding balance, even if you file by 30 June.
- Return filing deadline: 30 June 2026 — file your 2025 income tax return on iTax by this date. Late filing penalty: KES 20,000 or 5% of tax due (whichever is higher).
Important distinction: You can owe the tax on 30 April and file the return on 30 June — but the tax payment must be made by April to avoid interest. Many business owners get caught by this split deadline and file their return in May thinking they are on time, not realising they have already been accruing interest on the unpaid tax since 1 May.
VAT Returns — Monthly Obligation
If your business is VAT-registered (annual turnover above KES 5 million), you must file a VAT return every month, even in months when you have no VAT-able transactions (file a NIL VAT return).
- VAT return and payment due: 20th of each month for the previous month's transactions
- Example: January 2026 transactions → VAT return due 20 February 2026
- Late filing penalty: KES 10,000 or 5% of VAT due (whichever is higher)
- Interest on unpaid VAT: 2% per month, compounding
- 20 January 2026 — December 2025 VAT
- 20 February 2026 — January 2026 VAT
- 20 March 2026 — February 2026 VAT
- 20 April 2026 — March 2026 VAT
- 20 May 2026 — April 2026 VAT
- 22 June 2026 — May 2026 VAT (20 June is a Saturday; deadline moves to next business day)
- 20 July 2026 — June 2026 VAT
- 20 August 2026 — July 2026 VAT
- 21 September 2026 — August 2026 VAT (20 September is a Sunday)
- 20 October 2026 — September 2026 VAT
- 20 November 2026 — October 2026 VAT
- 21 December 2026 — November 2026 VAT (20 December is a Sunday)
PAYE — Monthly Employer Obligation
If you have employees — including yourself if you draw a salary from your own company — you must deduct PAYE from their salaries and remit it to KRA by the 9th of the following month.
- PAYE remittance deadline: 9th of each month for the prior month's payroll
- Example: March 2026 salaries → PAYE due 9 April 2026
- Late penalty: 25% of the PAYE owed — the highest penalty rate of any KRA obligation
- Interest on late payment: 2% per month
The 25% late penalty for PAYE is significantly harsher than for other tax types. A KES 80,000 PAYE liability paid just one day late attracts a KES 20,000 penalty — more than the Hustler plan subscription for three years.
Monthly Residential Rental Income (MRI) Tax — Landlords
Residential landlords with annual rental income between KES 288,000 and KES 15 million pay MRI at 7.5% of gross rental income, due monthly.
- MRI return and payment due: 20th of each month for that month's rental income
- Example: April 2026 rent collected → MRI due 20 May 2026
- Rate: 7.5% of gross rental income (no deductions permitted)
- Late filing penalty: KES 5,000 or 5% of MRI due (whichever is higher)
The MRI filing calendar mirrors the VAT calendar — the 20th of each month. If you pay rent and VAT on the same date, you simplify your compliance significantly.
Turnover Tax (TOT)
Turnover Tax is an alternative regime for businesses with annual turnover between KES 1 million and KES 25 million that choose not to operate under the normal income tax regime.
- Rate: 1.5% of gross monthly turnover
- Due by the 20th of each month
- TOT businesses do not also pay income tax — it is an either/or choice
- TOT businesses are still required to use eTIMS for their invoices
Note: TOT is often misunderstood. Some business owners assume it replaces VAT — it does not. If you are VAT-registered, you pay VAT separately even if you are on TOT. Speak to a tax professional if you are unsure whether TOT or normal income tax is better for your business.
Corporate Instalment Tax
Companies (limited liability) that expect to owe income tax at year end pay instalment tax in advance to spread the liability. Instalments are due on the 20th of the 4th, 6th, 9th, and 12th months of the tax year.
For companies on a January–December financial year, the 2026 instalment dates are:
- 20 April 2026 — First instalment
- 20 June 2026 — Second instalment
- 21 September 2026 — Third instalment
- 21 December 2026 — Fourth instalment
Each instalment should be approximately 25% of your estimated annual tax liability. Underpayment of instalments attracts 20% penalty on the shortfall. If you are unsure of your liability, err on the side of overpaying — KRA will refund the excess.
Withholding Tax
If you make certain payments to suppliers or employees and are required to withhold tax at source, that withholding tax must be remitted to KRA by the 20th of the following month.
Common withholding tax obligations include:
- Dividends paid to shareholders: 5% (for resident shareholders) or 15% (non-resident)
- Interest paid on loans: 15%
- Management fees paid to non-residents: 20%
- Royalties paid to non-residents: 20%
- Payments to suppliers under certain contracts (construction, consulting): 3% (resident) or 20% (non-resident)
What Happens When You Miss a Deadline
The penalty system works automatically. You do not receive a warning before the penalty is applied — it is assessed immediately from the day after the deadline passes.
| Tax Type | Late Filing Penalty | Late Payment Interest |
|---|---|---|
| Income Tax (individual) | KES 20,000 or 5% of tax | 2% per month |
| Income Tax (corporation) | KES 20,000 or 5% of tax | 2% per month |
| VAT | KES 10,000 or 5% of VAT | 2% per month |
| PAYE | 25% of PAYE owed | 2% per month |
| MRI | KES 5,000 or 5% of MRI | 2% per month |
| TOT | KES 10,000 or 5% of TOT | 2% per month |
A Practical Checklist for Small Business Owners
Use this monthly checklist to stay compliant:
- By 9th of each month — Remit PAYE for prior month (if you have employees)
- By 20th of each month — File and pay VAT return for prior month (if VAT-registered)
- By 20th of each month — File and pay MRI for current month (if landlord)
- By 20th of each month — File and pay Turnover Tax for prior month (if on TOT)
- By 30 April 2026 — Pay your 2025 income tax liability
- By 30 June 2026 — File your 2025 income tax return
- Ongoing — Generate eTIMS invoices for all sales within 24 hours of the transaction
- Ongoing — Collect eTIMS invoices from all suppliers
How KompliTax Keeps You on Time
KompliTax sends automatic email and in-app reminders before every filing deadline — 7 days before and 2 days before. The dashboard also shows your current VAT position and MRI liability in real time, so you always know what you owe before the deadline arrives.
You can also download a pre-populated summary of your monthly transactions, categorized and totalled by tax type, which you can use directly to complete your iTax return in minutes rather than hours.
Filing deadlines are not flexible. Getting organised is the only defence.