How to Apply for Tax Refunds From KRA in 2025 

After filing your 2024 KRA tax returns, you may have noticed a positive or negative amount listed as "Tax Due" on the receipt issued by KRA.

Having a negative tax due means that KRA owes you tax refunds, while a positive figure means that you owe KRA.  

If you have a negative figure, here is a detailed process for claiming the refunds:

1. Log on to itax.kra.go.ke - use your KRA PIN and password to log in.
2. On the iTax menu, select the tax obligation under the Refunds menu.
3. Confirm the taxpayer details and click Next.
4. Fill in the taxpayer’s bank account details and click Next.
5. Select the refund type.

One is required to provide the claim reason, the description of the reason for the claim, and the amount. One will be required to upload supporting documents for the refunds and then submit them.

Why You May Have a Tax Refund

1. Employed and Individual Kenyans

For Kenyans who are employed, KRA may owe them in cases where their employer overdeducted tax (PAYE).

This also occurs in cases where one has tax incentives on mortgage interest relief, insurance premium relief, and annual tax relief.

Refunds may also occur in scenarios where one has an exemption on account of disability. Other cases include overpayment of instalment taxes, withholding tax, and advance tax credits.

Most importantly, it is noted that a claim for an income tax refund must be made within 5 years from the date the tax was paid. In this case, tax refunds from 2024 can only be paid by KRA from now until 2029.

2. Kenyans With VAT Refunds

VAT refunds occur as a result of overpayment of taxes, as a result of excess credits as a result of zero-rated supplies.

The refunds may also result from having excess credits arising out of withholding VAT.

"Bad debts- after a period of three years but not more than 4 years from the date of that supply (where a registered person has made a supply and has accounted for and paid tax on that supply and has not received any payment from the person liable to pay the tax)" KRA explained.

3. Kenyans With Excise Refunds 

This mostly happens for a person dealing with excisable goods manufactured in or imported into Kenya who has paid excise duty.

Refunds only occur in cases where:

1. The goods have been damaged or stolen during the voyage or transportation to Kenya
2. The goods have not yet been consumed or used in Kenya
3. The buyer has returned the goods in accordance with the contract of sale.
4. The excise duty paid in respect of spirits or illuminating kerosene that have subsequently been used by a licensed or registered manufacturer to manufacture unexcisable goods.

‍Penalty

In cases where an individual makes a fraudulent or false claim, they will receive a penalty of an amount equal to two times the amount of the claim.