April 15, 2026
Maina Susan is a Tax & Finance Writer at Quartet Solutions, simplifying tax regulations and financial concepts to help businesses stay compliant.
LinkedIn >>Estimated read time: 3 minutes
Installment tax due dates in Kenya are critical for every business and taxpayer aiming to remain compliant with the Kenya Revenue Authority (KRA).
If you’re required to pay installment tax in Kenya, you’ll need to spread your tax into four equal payments of 25% each.
These are due on the 20th day of the 4th, 6th, 9th, and 12th months of your income year—usually April 20, June 20, September 20, and December 20 if you follow the calendar year. This applies to you if your annual tax exceeds KES 40,000.
Missing your installment tax due dates in Kenya can cost you through penalties and interest, which can quickly affect your cash flow.
In this guide, Quartet Consulting walks you through what you need to know about installment tax due dates in Kenya, so you can stay compliant, avoid surprises, and manage your taxes with confidence.
So let’s get started!!
Table of Contents
Installment tax in Kenya is the income tax you pay to KRA in advance, instead of waiting until the end of your financial year.
If you run a company in Kenya, your profits are generally taxed at 30% corporate tax, and installment tax allows you to pay this gradually throughout the year.
By paying your taxes in installments, you can:
Spread out your tax payments and manage your cash flow better
Avoid a large, unexpected tax bill at year-end
Stay compliant with KRA requirements and avoid penalties
Quartet Consulting can guide your business step by step, making invoice creation fast, simple, and fully compliant with KRA regulations.
Book Your Free Consultation with Quartet Consulting TodayWhatsAppYou’re required to pay installment tax in Kenya if you earn income that is not fully taxed through PAYE and your annual tax liability exceeds KES 40,000.
In most cases, this applies to you if:
You run a limited company (subject to 30% corporate tax)
You are self-employed or run a business
You earn business income or other income not fully covered by PAYE
Your annual tax liability outside PAYE is over KES 40,000
Meeting these criteria means you’ll need to plan ahead and pay your taxes in line with the installment tax due dates in Kenya.
N/B:
You may also want to check out our simple guide on VAT in Kenya to understand whether your business qualifies for VAT registration and compliance requirements.
Who Is Exempt from paying Installment Taxes in Kenya?
You don’t need to pay installment tax if:
You are registered under Turnover Tax (TOT)
Your income is fully covered under PAYE
Your taxable income is below the KES 40,000 threshold
N/B:
To learn more about Turnover Tax in Kenya, check out our simple guide: “Turnover Tax in Kenya”
Tip:
It’s always best to confirm early whether you’re required to pay installment tax.
If you’re unsure about your obligation or how to assess your liability, working with a tax consultant such as Quartet Consulting can help you quickly determine your status and stay fully compliant with KRA requirements.
Understanding your installment tax due dates in Kenya is essential if you want to stay compliant and avoid unnecessary penalties.
In most cases, you’ll pay your tax in four equal installments of 25% each spread across the year.
Standard Installment Tax Due Dates
For most taxpayers, the due dates fall on:
20th day of the 4th month
20th day of the 6th month
20th day of the 9th month
20th day of the 12th month
Example: January to December Tax Year
If your financial year runs from January to December, your installment tax due dates in Kenya will typically be:
20th April
20th June
20th September
20th December
Agricultural Businesses
If you’re in agriculture, your payment structure is slightly different:
75% due in the 9th month
25% due in the 12th month
Important Reminder
After you’ve paid your installment tax, any remaining balance is due four months after your financial year ends. For example, if your year ends in December, you’ll need to clear the balance by 30th April.
Paying on time helps you avoid penalties and keeps your business in good standing with KRA.
Understanding how your installment tax is calculated helps you plan ahead and meet your installment tax due dates in Kenya without stress.
KRA gives you two main methods to calculate your installment tax. You can choose the one that best reflects your business situation.
1. Prior Year (Historical) Method
This method is based on the tax you paid in the previous year, with a small 10% adjustment by KRA.
Here, you base your payments on the tax you paid last year.
You take your total tax from the previous year
Add 10%
Then divide it into four equal payments of 25% each
This is the easiest option if your income hasn’t changed much.
Example (Jan–Dec Year):
|
2. Current Year (Estimated) Method
This method is based on your expected income for the current year.
It is commonly used if:
You’re starting a new business
Your income has changed significantly
You’ve moved from losses to profits
How it works:
Calculate your expected profit for the year
Apply the relevant tax rate (e.g. 30% for companies)
Deduct any withholding tax already paid
Then split the total tax into four equal installments
This method works best if your business is growing or your income is unpredictable.
Example (Jan–Dec Year):
|
Choosing the right method helps you avoid overpaying or underpaying—and keeps you fully compliant with KRA.
If you’re unsure how to calculate your installment tax for your business, Quartet Consulting can help you assess your liability and determine the most accurate method for your situation.
Book a Free consultation with us today!!
Did you know that properly recording all your business expenses and purchases through eTIMS can help you reduce your overall tax liability—and therefore lower your installment tax amount?
KRA now places strong emphasis on eTIMS compliance, meaning business transactions that are not processed through eTIMS may not be recognized for tax purposes.
To learn more about how eTIMS works and how it affects your tax obligations, check out our recommended articles section on eTIMS.
Recommended Articles:
If you’re new to ETIMS, you should also read:
Paying your installment tax in Kenya through the iTax system is simple and can be done in a few steps.
Step-by-Step Guide
1. Log in to iTax
Access the iTax portal using your KRA PIN and password.
2. Go to Payment Registration
Navigate to: Payments → Payment Registration
3. Select Tax Type
Tax Head: Income Tax
Tax Sub-head: Installment Tax
4. Generate Payment Slip
Review the details carefully and generate your payment slip (PRN).
5. Make Your Payment
Use the PRN to pay through:
KRA partner banks
Mobile money (M-Pesa Paybill: 572572)
Other approved payment channels
Tip
Always save your payment slip and receipt as proof of payment. This helps you avoid issues during reconciliation or compliance checks with KRA.
Missing your installment tax due dates in Kenya can lead to costly penalties that affect your business cash flow and compliance status.
If you pay late or underpay your installment tax, KRA may apply the following:
| Type of Penalty | What It Means | Charge |
|---|---|---|
|
Late payment interest |
– Charged on any unpaid tax amount
|
1% per month on outstanding tax
|
|
Late filing / late payment (Companies & Partnerships)
|
– Applied when income tax returns or payments are late
|
5% of tax due OR KES 20,000 (whichever is higher)
|
|
Underpayment penalty |
– Applied when you pay less installment tax than required
|
20% of the underpaid tax amount
|
1. What are the installment tax due dates in Kenya?
Installment tax in Kenya is due on the 20th day of the 4th, 6th, 9th, and 12th months of your income year. These are the key deadlines you must follow to stay compliant with KRA.
2. How many installment tax payments are required per year?
You are required to make four installment tax payments per year, each equal to 25% of your estimated or prior year tax liability.
3. How do I generate an installment tax payment slip on iTax?
To generate your payment slip, log in to iTax, go to Payment Registration, select Income Tax → Installment Tax, and then generate your payment slip (PRN) for payment processing.
4. What happens if I miss installment tax due dates in Kenya?
Missing your installment tax deadlines may lead to penalties, monthly interest charges, and KRA compliance issues, which can increase your total tax liability over time.
5. How do I know if I am required to pay installment tax in Kenya?
You are generally required to pay installment tax if your annual tax liability exceeds KES 40,000 and your income is not fully covered by PAYE.
A tax review can help confirm your obligation and ensure accurate compliance.
If you’re unsure about your obligations or want to avoid costly mistakes, Quartet Consulting can help you stay fully compliant and confident with your tax matters.
We can assist you with:
Installment tax reviews to determine what you owe
KRA compliance checks to avoid penalties
iTax support and filing assistance
Tax planning for SMEs , companies, and self-employed professionals
Get expert guidance today and make sure you never miss your installment tax due dates in Kenya.
Get a free quote from Quartet Consulting today and stay KRA compliant with ease.
Click the WhatsApp button to book your free consultation with Quartet Consulting now
Or call us at 0736 570 370
WhatsAppThis guide is provided for general informational purposes only and should not be considered professional tax advice.
Tax obligations may vary depending on your specific circumstances.
You are advised to confirm your installment tax obligations with the Kenya Revenue Authority (KRA) or consult a qualified tax professional for personalized guidance.
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