Ref: Tax procedures act 2015

Offence Penalty
Failure to register or de-register for tax purposes where required to do so by a tax law Penalty of KES 100,000 per month or part thereof subject to a cap of KES 1million
Failure to keep, retain or maintain proper documents as required by a tax legislation Penalty equal to 10% of the amount of tax payable subject to a minimum of KES 100,000
Late submission of PAYE returns Penalty equal to 25% of the tax due or KES 10,000; whichever is higher
Late filing of any other tax return Penalty of 5% of the amount of tax payable under the return subject to a minimum of KES 2,000 for individuals and Sh.20,000 for corporates
KES 1,000 per month for turnover tax
Failure to file any other document, other than a tax return Penalty of KES 1,000 per day subject to a maximum penalty of KES 50,000
Tax avoidance Penalty equal to 200% of the amount avoided by a taxpayer This penalty is not eligible for waiver by the Commissioner or the Cabinet Secretary
Fraudulent claim for a refund of tax Penalty of 200% the amount of the claim under all tax laws
Offenses committed by KRA officers or persons required to act on Commissioner instructions Fine not exceeding KES 2 million or to imprisonment for a term not exceeding 5years or to both
Offenses committed by tax agents such as participating in creation of tax avoidance or evasion schemes; acting as a tax agent illegally Fraudulent act of omission and commission in respect of a tax period Fine equal to 200% of the amount of tax evaded or a fine of KES 5 million whichever is higher or to imprisonment for a term not exceeding 5 years, or to both Fine not exceeding KES 10 Million or 200% of the amount of tax evaded, whichever is higher, or imp
Failure to appear before the commissioner when required when the Commissioner is satisfied that the person committed an offense KES10,000 in the case of an individual and KES 100,000 in any other case.
Late payment penalty- Individual return 5% of the tax due and a late payment of 1% per month on the unpaid tax until the tax is paid in full
Late payment penalty- corporates Additional 20% of tax involved
Late filing of withholding tax return Either 5% of the tax payable or twenty thousand shillings, whichever is higher
Failure to deduct or pay Withholding Tax 10% of the amount of the tax involved, up to a maximum of Kshs. 1 million
Failure to pay Stamp Duty Additional 5% of the payable duty for every quarter, from the date of the Instrument
Failure to pay Excise Duty or VAT Whichever is greater of, 5% of the amount of the tax due or Ksh. 10,000
KRA PIN-related offense Ksh. 2,000 per offence