KRA Extends Tax Filing Deadline to July 5 Amid iTax System Challenges

The Kenya Revenue Authority (KRA) announced a five-day extension for filing 2024 income tax returns, pushing the deadline from June 30 to midnight on July 5. The decision, prompted by persistent technical challenges with the iTax portal, offers relief to millions of Kenyans who faced difficulties submitting their returns due to system slowdowns and outages. The KRA also waived penalties and interest for late filings, provided taxpayers comply by the new deadline, a move aimed at easing the burden on individuals and businesses grappling with the digital platform’s failures. The extension, described as a “service lane” by the tax authority, underscores the challenges of Kenya’s digital tax infrastructure while highlighting efforts to boost compliance amid economic pressures.

The original deadline of June 30 saw an unprecedented surge in traffic on the iTax portal, with thousands of taxpayers attempting to file their returns in the final hours. The system, overwhelmed by the volume, experienced prolonged downtimes, leaving many unable to log in or complete their submissions. “The portal was down for hours,” said Mary Wanjiku, a Nairobi-based accountant. “My clients were panicking, and I couldn’t even access the system to help them.” Social media platforms, particularly X, were flooded with complaints, with users sharing screenshots of error messages and captchas that failed to load. “It’s like KRA sets us up to fail every year,” posted a frustrated taxpayer from Kisumu. The outcry prompted the KRA to initially grant a 24-hour extension to July 1, but continued system issues necessitated the additional five-day grace period.

The KRA’s decision to extend the deadline and waive penalties is grounded in Section 89 (5a)(b) of the Tax Procedures Act, which allows the authority to provide relief in exceptional circumstances. “Cognisant of the challenges faced by taxpayers during the period, we will waive any interest or penalties for late filing of end-year returns for the income year ending December 31, 2024, provided such returns are filed by July 5, 2025,” the KRA stated in a public notice. The authority praised Kenyans for their commitment to tax compliance, noting that over six million taxpayers had filed their returns by June 26, a 20 percent increase from the previous year. “The massive turnout shows Kenyans’ patriotism and trust in the tax system,” said KRA Commissioner General Humphrey Wattanga. “We’re committed to supporting taxpayers during this period.”

Filing tax returns is a legal requirement for all Kenyans with a KRA Personal Identification Number (PIN), regardless of whether they earned income in 2024. This includes employed individuals, self-employed persons, business owners, landlords, farmers, and those with no income, who must submit a NIL return. Failure to file by the deadline typically incurs a penalty of KES 2,000 or 5 percent of the tax due for individuals, whichever is higher, and KES 20,000 or 5 percent for companies. Late payments attract an additional 5 percent penalty plus 1 percent monthly interest on unpaid taxes. The waiver of these penalties is a significant relief, particularly for small business owners and informal sector workers facing economic challenges. “This extension is a lifeline,” said Peter Kamau, a shopkeeper in Nakuru. “I couldn’t file because the system kept crashing, and I can’t afford a fine right now.”

The iTax portal, launched to streamline tax compliance, has faced recurring issues during peak filing periods, a problem exacerbated by Kenya’s high mobile phone penetration rate, which stands at 85 percent. The KRA’s “Jiondolee Jam” campaign, meaning “avoid the rush” in Swahili, encouraged early filing to reduce congestion, but many taxpayers waited until the last minute, overwhelming the system. “We’ve upgraded the infrastructure, but the last-minute rush is a national sport,” said a KRA official who requested anonymity. “Kenyans need to start filing earlier to avoid these issues.” The authority extended service centre hours to 8:00 p.m. on July 1 and opened select Huduma Centres for 12-hour shifts to assist taxpayers, particularly those without reliable internet access.

The extension coincides with the KRA’s ongoing Tax Amnesty Program, effective from December 27, 2024, to June 30, 2025, which has waived over KES 140 billion in penalties, interest, and fines for tax debts accrued up to December 31, 2023. The program, designed to encourage compliance, has benefited over 1.9 million taxpayers. “The amnesty and the extension show KRA’s willingness to work with us,” said Jane Mwangi, a tax consultant in Mombasa. “But they need to fix the iTax system for good.” The amnesty requires taxpayers to pay the principal tax by June 30, 2025, or propose a payment plan, offering a rare opportunity to regularize tax affairs without punitive costs.

For employed individuals, filing requires a P9 form from their employer, detailing salary, allowances, and tax deductions. Self-employed taxpayers must prepare financial statements, including income statements, balance sheets, and withholding certificates. Those with no income, such as unemployed graduates or retirees, must file NIL returns to avoid penalties. “I didn’t earn anything last year, but I still have to file,” said Mercy Achieng, a recent university graduate. “The process is confusing, and the system crashing doesn’t help.” The KRA has provided step-by-step guides and YouTube tutorials to assist taxpayers, but many, especially in rural areas, rely on cybercafes or Huduma Centres for support.

The economic context adds urgency to the extension. With inflation at 5.6 percent in June 2025, many Kenyans are struggling financially, making timely tax compliance challenging. The Finance Act of 2023 introduced new tax bands, including 32.5 percent for monthly incomes between KES 500,000 and KES 800,000, and 35 percent for incomes above KES 800,000, increasing the tax burden for high earners. Small businesses, subject to a 3 percent Turnover Tax for gross turnovers between KES 1 million and KES 25 million, also face compliance pressures. “The economy is tough, and now we’re dealing with a faulty system,” said John Otieno, a taxi driver in Nairobi. “This extension gives us breathing room.”

Public sentiment on X reflects frustration but also relief at the extension. “KRA should focus on fixing iTax instead of just extending deadlines,” one user posted. Another wrote, “Thank you, KRA, for the five days, but please make the system work!” Humorous memes likening the iTax portal to a “digital traffic jam” went viral, highlighting Kenyans’ knack for finding humor in adversity. The hashtag #KRATaxDeadline trended briefly, capturing the public’s mixed emotions. Some users speculated that the system crashes were intentional to catch defaulters with fines, a claim the KRA dismissed as baseless. “Our goal is compliance, not punishment,” said Wattanga.

The KRA’s efforts to improve compliance include digital outreach and extended contact centre hours, available from 7:00 a.m. to 8:00 p.m. on weekdays. Taxpayers can also email callcentre@kra.go.ke or call 0711099999 for assistance. “We’re doing everything we can to support taxpayers,” said a KRA spokesperson. “The extension and penalty waiver are part of that commitment.” However, critics argue that the authority must invest in robust digital infrastructure to prevent future disruptions. “Every year, it’s the same story,” said David Koros, a tax policy analyst. “KRA needs to prioritize system upgrades to match Kenya’s digital ambitions.”

The extension has implications for various sectors. Businesses, particularly small and medium enterprises, benefit from the penalty waiver, allowing them to focus on recovery rather than fines. Farmers, who must file returns for agricultural income, also gain time to compile records. “I was worried about the penalty because I couldn’t access iTax,” said Esther Naserian, a farmer in Narok. “Now I can get my documents in order.” The KRA has urged taxpayers to use the extended period wisely, emphasizing that no further extensions are planned.

The tax filing process, while mandatory, is critical for transparency and revenue collection, which funds public services like healthcare and infrastructure. The KRA’s data shows that nine million active taxpayers are registered, but compliance remains a challenge, particularly in the informal sector. The authority’s focus on digital filing aims to net tax cheats and expand the tax base, but system reliability remains a hurdle. “A stable iTax system would make compliance easier for everyone,” said Mwangi. “KRA needs to match its ambitions with infrastructure.”

As the July 5 deadline approaches, the KRA is ramping up support, with staff deployed to assist at service centres and Huduma Centres. Taxpayers are encouraged to file early to avoid another last-minute rush. “We’ve opened the service lane, but don’t wait until the final hour,” said Wattanga. The extension, while a temporary fix, underscores the need for long-term solutions to Kenya’s tax administration challenges. For now, taxpayers have a critical window to comply, with the hope that future filing seasons will be smoother and more accessible.