Tax Debt Management
Understanding Your KRA Tax Debt
Tax debt is rarely as straightforward as it appears on your KRA statement. What you see often includes a mix of principal tax, accumulated penalties, interest, and in some cases, unfiled returns that continue to generate exposure.
We take a structured approach to break this down, reconciling your records with the Kenya Revenue Authority (KRA) ledger to establish what is actually due and where the discrepancies lie. This clarity prevents overpayment and ensures that any action taken is based on accurate information.
If your debt is linked to missed filings or inconsistencies, it is often necessary to first stabilise your position through our Tax Compliance & Filing services before engaging KRA.
Clarity is what turns a tax problem into a manageable process.
Our tax division recognizing that taxation constitutes a major business cost is able to provide advisory,agency and tax compliance services in a myriad of areas.
Speak to our
tax experts
Have questions about how we can help? Our team is here to help. Feel free to get in touch
What We Do
Our Tax Debt Management Services
Outstanding tax debt doesn’t have to derail your business — let’s resolve it
Penalty & Interest Waiver Applications
We prepare and submit waiver requests grounded in your compliance history, the corrective actions already taken, and valid justification under KRA guidelines. Each application is backed by accurate reconciliation of your outstanding balances
Voluntary Disclosure
Voluntary disclosure allows you to come forward before KRA initiates action, reducing penalties and demonstrating good faith. We manage this process carefully, ensuring disclosures are accurate, complete, and strategically presented.
KRA Instalment Payment Plan Negotiations
We negotiate structured instalment payment arrangements that reflect your actual cash flow and operational realities. The goal is to agree on terms that KRA will accept while ensuring your business remains functional
Compliance Restoration
We ensure that all outstanding returns are filed, your KRA records are reconciled, and your account reflects an accurate and updated position. This is essential for securing a Tax Compliance Certificate and maintaining credibility with partners, lenders, and regulators.
Tax Debt and Business Continuity
We approach tax debt with a focus on continuity, prioritising actions that reduce immediate enforcement risk while protecting your ability to operate. This includes managing exposure to agency notices, aligning repayment with cash flow, and sequencing corrective actions
Tax Debt Management FAQs
Yes, under certain conditions. KRA has a penalty and interest waiver framework that allows taxpayers to apply for relief, particularly in cases of genuine hardship, first-time default, or where returns have been filed but taxes not paid. We prepare and submit waiver applications on your behalf.
A KRA instalment plan allows a taxpayer to pay outstanding tax debt in agreed monthly instalments rather than in a single lump sum. We negotiate directly with KRA on your behalf to secure a realistic and sustainable payment arrangement.
Voluntary disclosure is the process of proactively approaching KRA to declare previously undisclosed tax liabilities before KRA discovers them through an audit. Voluntarily disclosed amounts often attract reduced penalties. We assess whether voluntary disclosure is advantageous in your specific situation.
Yes. KRA has powers to attach and sell business assets, freeze bank accounts, and pursue directors personally for unpaid tax in certain circumstances. Acting early – before enforcement – gives us far more tools to negotiate a favourable resolution. Contact us as soon as you are aware of outstanding liabilities.
Trusted Tax Advisors—Here for Your Business.
Taxation is no longer just a compliance function—it’s a critical part of strategic decision-making. Let us help you stay ahead of risks, unlock savings, and ensure peace of mind with expert tax advisory and consultancy tailored to Kenya’s tax environment.
AT PEDO & ASSOCIATES
We balance the books and your growth together.
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