How do I pay KSh 1 under the KRA tax amnesty?

Log into your iTax account, navigate to Payments, select Payment Registration, choose your tax head (Income Tax, VAT, PAYE), select the relevant tax period, clear the penalty amount shown, type 1, click Add, repeat for each eligible year, select your payment method, submit the payment registration, download your Payment Registration Number (PRN), and complete payment.

Who is eligible for the KRA tax amnesty?

The KSh 1 payment only applies to eligible penalties and interest where the principal tax has already been paid. Kenyan businesses and self-employed professionals with accumulated penalties and interest can use this amnesty program.

What are the typical penalty amounts in Kenya?

Typical penalty structures for Kenyan taxpayers include: Individual Income Tax (KSh 2,000 in penalties/interest), PAYE or VAT (KSh 10,000 in penalties/interest), and Company Income Tax (KSh 20,000 in penalties/interest). Amounts vary based on how long penalties have accumulated.

How long does it take to complete the KRA tax amnesty payment?

You can complete your KSh 1 payment in under 15 minutes once you have logged into your iTax account and follow the 9 steps in the payment registration process.

How to Pay KSh 1 Under the KRA Tax Amnesty Program: A Step-by-Step Guide for Kenyan Businesses

You've been receiving notices from the Kenya Revenue Authority about outstanding penalties and interest on your tax account. The amounts keep growing, and compliance feels impossible. Then you hear about the KRA Tax Amnesty Program, where you can settle decades of accumulated penalties and interest for just KSh 1. But how do you actually do it?

The KRA Tax Amnesty Program is a genuine opportunity for Kenyan businesses and self-employed professionals to clear the slate on tax penalties and interest, provided the principal tax has already been paid. Here's exactly how to navigate the iTax portal and complete your KSh 1 payment in under 15 minutes.

TL;DR: Key Takeaways for Kenyan Business Owners

The KSh 1 payment only applies to eligible penalties and interest where principal tax has already been cleared
You must use your iTax account to access the Payment Registration system
You'll identify your outstanding liabilities by tax head (Income Tax, VAT, PAYE) and settle each eligible year for KSh 1
Once registered, you download your Payment Registration Number and complete payment online or via bank

The 9-Step Process to Complete Your KSh 1 Payment

Step 1: Log into your iTax account

Access the KRA iTax portal using your KRA PIN and password. If you haven't registered, visit the KRA website (kra.go.ke) and create an account using your PIN and personal details.

Step 2: Navigate to Payments

Once logged in, select Payments from the main menu, then choose Payment Registration.

Step 3: Select Your Tax Head

Choose the relevant tax category. Common options for Kenyan businesses include:

Income Tax (for self-employed professionals and business owners)
VAT (for registered traders)
PAYE (for employers)
Rental Income Tax

Step 4: Confirm You're Eligible

Remember: the KSh 1 payment only applies to penalties and interest. Your principal tax must already be paid. If you owe primary tax, you must settle that separately before using the amnesty.

Step 5: Select the Relevant Tax Period

Choose the year or tax period with outstanding penalties or interest. The iTax system will display the amounts owed.

Step 6: Identify Your Penalty Amounts

The system shows typical penalty structures for Kenyan taxpayers:

Individual Income Tax: KSh 2,000 in penalties/interest
PAYE or VAT: KSh 10,000 in penalties/interest
Company Income Tax: KSh 20,000 in penalties/interest

These vary based on how long penalties have accumulated.

Step 7: Enter KSh 1 and Add to Payment

Clear the penalty amount shown, manually type "1" in the field, and click Add. This registers KSh 1 as your payment for that tax period.

Step 8: Repeat for Each Eligible Year

If you have multiple years with penalties or interest (common for businesses that have been informal or non-compliant), repeat this process for each year. You might end up with KSh 3 to KSh 5 total if clearing 3-5 tax periods.

Step 9: Complete Payment and Get Your PRN

Scroll to the bottom of the page, select your preferred payment method (M-PESA, bank transfer, or cash), then submit your Payment Registration. Download your Payment Registration Number (PRN) immediately and use it to complete payment through your chosen channel.

Why This Matters for Nairobi and Beyond

Many Kenyan SMEs, particularly those transitioning from informal to formal operations, have accumulated tax liabilities they thought were unpayable. The amnesty removes this barrier. InsightForge has worked with Nairobi-based retailers, tour operators, and logistics firms who used this program to clear years of compliance issues and properly register with KRA for the first time.

The amnesty isn't permanent. Deadlines have been extended multiple times, but clarity is expected in the coming months. If you've been holding off on tax compliance, the time to act is now.

Ready to clear your tax account and operate with full compliance? InsightForge helps Kenyan businesses navigate KRA requirements and implement proper accounting systems. Visit insightforge.dev to discuss your tax and compliance strategy.