I Got a KRA Demand Letter: What to Do Next

A KRA demand letter asks you to pay money KRA says you owe by a stated date. Do not ignore it, and do not pay it blind. Confirm it is genuine and matches your iTax ledger, work out which kind of letter it is, because that decides whether you can object, and then pay, apply for a payment plan or object in time.

Check the letter first

• Find the debt on iTax. Your ledger should show the same tax, period and amount. If it does not, call KRA on 020 4 999 999 or 0711 099 999, email callcentre@kra.go.ke, or ask your Tax Service Office, your local KRA office.
• Pay only through iTax. Generate a payment registration number (PRN) yourself and pay against it. Do not send money to a person.
• Check anyone who visits. A KRA notice from 2022 warned about people posing as staff and pointed to its Thibitisha KRA staff check, including on *572#.
• Read your iTax email. KRA can validly serve notices electronically: section 74 of the Tax Procedures Act. Keep your contact details up to date.

Work out which letter you have

Letter	What it means	Can you object?
Debt demand	KRA is chasing a debt it treats as confirmed, such as a return you filed but did not pay	Usually too late for this route, so see the options below
Assessment	KRA has set the tax itself, for example because you did not file (section 29) or it changed a figure (section 31)	Yes, within 30 days
Penalty or interest demand	KRA is charging a penalty or late payment interest	Yes, within 30 days: section 3, “tax decision”

You owe a penalty only once KRA demands it in writing, with a due date at least 30 days after the notice: section 89(3). An assessment must also give at least 30 days to pay, but the penalty and interest still run from the original due date: sections 29(2) and (3), and 31(8) and (9).

KRA’s debt leaflet describes its usual steps as a demand with 14 days to pay, a 7-day reminder, then an immediate demand before enforcement. The leaflet is undated, and these steps are not set out in the Act, so do not count on getting all three.

Choose your response

You agree and can pay. Pay by the date stated. If you pay the tax in full, plus interest up to the date of the notice, within the time given, no further interest builds between the notice and your payment: section 38(6).

You agree but cannot pay at once. Apply for a plan before the date passes. KRA’s guidelines approve up to six monthly instalments automatically on iTax. Longer plans need your reasons and documents at your Tax Service Office. Interest keeps running (section 33(5)), and a missed instalment cancels the plan.

You disagree with an assessment or penalty. Lodge an objection within 30 days of being notified, not counting weekends and public holidays: sections 51(2) and 77(2). You must also pay the part you accept, or apply for more time to pay it. If you have missed the date, you can apply for an extension. Our guide on how to object to a KRA assessment sets out the steps.

The ledger is wrong. If you already paid, or a charge does not belong to you, take your proof to the debt office at your Tax Service Office. KRA’s guidelines ask for reconciliation documents, such as proof of payment or an objection decision.

Your own return was wrong. You can apply to amend a return within five years of filing it, and KRA can accept or reject the change: section 31(2) to (4).

The debt is from 2025 or earlier. If 31 December 2026 has not passed, check our tax amnesty guide before you pay, because paying the wrong amount can matter. KRA’s amnesty guidelines say penalties and interest paid in error cannot be refunded or transferred.

Whichever you choose, reply in writing and keep your acknowledgement.

Why the total may be higher than you expected

Example. A business pays KES 200,000 of VAT exactly six months late.

• Late payment penalty at 5 percent (section 83A): KES 10,000
• Interest at 1 percent a month for six months (section 38): KES 12,000
• Total demanded: KES 222,000

Interest is simple, not compounded, and cannot exceed the tax itself: section 38(3) and (8). A late return would add its own penalty under section 83.

What happens if you do nothing

An assessment you never objected to is generally treated as correct: section 50. KRA can then use its recovery powers, including:

• An agency notice telling your bank or customers to pay it directly (section 42)
• Taking and selling goods (section 41)
• A restraint on your property (section 40)
• Withdrawing your tax compliance certificate (section 72)
• An order stopping you leaving Kenya (section 45)
• A civil claim for the debt (section 39)

Failing to pay tax by the due date is also an offence: section 95.

A common mistake is reading the payment date as your deadline to object. Your 30 days run from the day KRA notified you.