Kenyan tax penalties are automatic — iTax computes them the moment a deadline passes, whether or not anyone at KRA looks at your file. The most expensive compliance mistakes we see are not errors of judgement but simple missed dates. Pin this calendar to the wall.
Monthly deadlines
| Date | Obligation | Applies to |
|---|---|---|
| 9th | PAYE remittance | All employers |
| 9th | SHIF, NSSF & Affordable Housing Levy | All employers |
| 20th | VAT return & payment | VAT-registered businesses |
| 20th | Withholding tax remittance | Anyone who withheld tax on rent, professional fees or services |
| 20th | Monthly rental income tax | Residential landlords under the MRI regime |
| 20th | Turnover tax | Small businesses under the TOT regime |
Even a NIL VAT return must be filed by the 20th. "I had no sales" is not a defence against the late-filing penalty — 5% of tax due or KES 10,000, whichever is higher.
Quarterly & instalment deadlines
Companies (and individuals with significant non-employment income) pay instalment tax in four tranches — by the 20th day of the 4th, 6th, 9th and 12th months of the accounting period. For a December year-end, that's 20 April, 20 June, 20 September and 20 December, at 25% of the estimated annual liability each time. Underestimating attracts interest, so revisit the estimate at each instalment.
Annual deadlines
| Deadline | Obligation |
|---|---|
| 30 June | Individual income tax returns (for the prior calendar year) — including directors and sole proprietors |
| End of 6th month after year-end | Company income tax return (e.g. 30 June for a December year-end) |
| End of 4th month after year-end | Balance of corporation tax payable |
| January 31 | NITA levy annual reconciliation (where applicable) and P9 issuance to staff for filing season |
| Company anniversary | Annual returns to the Registrar of Companies (BRS) — separate from KRA, and often forgotten |
What the penalties actually cost
- Late filing (most returns): 5% of the tax due, with minimums — KES 10,000 for VAT and corporate returns; KES 2,000 for individuals.
- Late payment: 5% penalty plus 1% interest per month, compounding until settled.
- PAYE late filing: 25% of the tax due or KES 10,000, whichever is higher.
These add up fast because they stack: one forgotten month of VAT on a KES 200,000 liability costs KES 10,000+ in penalty plus growing interest — for a return that takes an hour to file.
Three habits that make deadlines painless
- One compliance calendar, one owner. Every obligation, every entity, one named person responsible — with reminders set a week early, not on the day.
- Close your books by the 5th. If month-end close finishes early, the 9th and the 20th stop being emergencies.
- File even when cash is tight. Filing on time and paying late is far cheaper than not filing at all — and it keeps you eligible for payment plans and waivers.
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