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Payment & Finance

Receipt of Payment

A Receipt of Payment acknowledges that a payment has been received. Provides a paper trail for both parties and is required for proper bookkeeping in Kenya.

This template is a professionally drafted legal document. It does not constitute legal advice. LegalEase accepts no liability beyond the cost of the document purchased. For complex transactions, we recommend review by a qualified legal practitioner.
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What this document covers

Payer and payee details
Receipt number and date
Amount received (figures and words)
Mode of payment (cash, M-Pesa, bank transfer)
Description of what the payment is for
Outstanding balance if partial payment
Payee signature
"In full and final settlement" clause if applicable

Frequently Asked Questions

Is a receipt of payment a legal document in Kenya?
Yes. A receipt acknowledges that a specific payment has been made and received. It is essential for bookkeeping, tax compliance, and resolving any future disputes about whether payment was made. Under the Tax Procedures Act, businesses are required to maintain records of receipts.
What should a Kenyan payment receipt include?
Date, receipt number, payer's name, payee's name, amount received (in figures and words), mode of payment (cash, M-Pesa, bank transfer), what the payment is for, and the payee's signature. For VAT-registered businesses, the KRA ETR receipt is also required.
Does a receipt prove that a debt is settled?
A receipt proves that a specific payment was received. If it states 'in full and final settlement', it can extinguish the debt entirely. If it is a partial payment receipt, the remaining balance is still owed. Always be precise about what the receipt covers.