How to Apply for a KRA Payment Plan on iTax (and Qualify for the 2026 Tax Amnesty)

Many taxpayers assume that once KRA sends a demand, the full amount has to be paid at once. That isn’t always the case. If you can’t clear your tax debt in one go, you can apply for a KRA payment plan through the iTax portal.

With the 2026 tax amnesty also running, a payment plan can do more than ease your cash flow. It can help you get penalties and interest waived. This guide explains how it works, how to apply, and what to watch out for.

What Is a KRA Payment Plan?

A payment plan is a structured arrangement that lets you settle your tax debt in instalments instead of one lump sum. You apply through iTax, choose the periods you want to cover, and agree to clear the debt according to the plan.

What Is the 2026 Tax Amnesty?

The tax amnesty was re-introduced under the Finance Act 2026. It started on 1 July 2026 and runs until 31 December 2026.

It offers a waiver of penalties, interest and fines on tax debts for periods up to 31 December 2025. The key point is that the amnesty does not wipe out the tax itself. You still need to pay the principal tax. Once you do, the eligible penalties, interest and fines are removed.

Read More : KRA TAX AMNESTY 2026

How to Apply for a Payment Plan on iTax

  1. Log into iTax with your KRA PIN and password.
  2. Go to the Payments menu.
  3. Select “Apply Payment Plan (new).”
  4. Choose the relevant tax periods. For the amnesty, select the amnesty period(s) covered by your debt.
  5. Complete and submit the application, and accept the terms and conditions.

Once the principal tax under your plan is fully paid, iTax generates an amnesty certificate and sends it to your iTax-registered email address.

The Deadline That Matters Most

The most important rule is this: all principal tax under your payment plan must be fully cleared by 31 December 2026. If it isn’t, you risk losing the waiver on penalties and interest.

KRA has also stated that a payment plan applied for in July 2026 could have a maximum of six instalments. If you are applying now, with just over two months left, confirm the instalment limit that applies to you with KRA before you commit to a schedule.

Mistakes to Avoid

Paying the amount iTax displays without checking it. The figure generated for payment may include penalties and interest alongside the principal. Check your tax ledger and adjust the amount so you settle the principal tax only.

Including debts you are disputing. KRA advises selecting only the periods with debts you agree with and leaving out those in dispute. Disputed debts can be handled through KRA’s Alternative Dispute Resolution framework, and settling the disputed principal there can still unlock the amnesty benefits.

Assuming everything qualifies. The amnesty doesn’t cover tax liabilities arising on or after 1 January 2026. A payment plan can still help you with those debts, but the waiver won’t apply to them.

Leaving it too late. Reconciling records and fixing errors takes time. The earlier you start, the more room you have to complete payments before the window closes.

Before You Apply: A Quick Checklist

  • Your KRA PIN and iTax password are ready
  • You have reviewed your tax ledger and know your outstanding principal
  • You know which periods fall before 2026
  • You have identified any debts you are disputing
  • You have a realistic payment schedule that finishes before 31 December 2026

Not Sure If You Qualify?

Every taxpayer’s situation is different, especially if you have several tax periods, mixed debts or ongoing disputes. At Pedo & Associates Accountants, we can review your iTax ledger, help you set up the right payment plan and make sure you don’t miss the amnesty window.

📞 +254-722-946-132
✉️ info@pedoassociates.co.ke
🌐 www.pedoassociates.co.ke

This article is for general information only and isn’t tax advice. Always confirm details with KRA or a qualified tax professional.

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