
UPDATE – July 1, 2025: In further developments following the initial 24-hour extension, the Kenya Revenue Authority has announced an additional extension of the tax filing deadline to July 5th, 2025. Citing provisions under Section 89 (5a)(b) of the Tax Procedures Act, KRA has committed to waiving any interest or penalties that may accrue due to late filing of end-year returns for the income year ending December 31st, 2024, provided such returns are filed by the new deadline. This second extension acknowledges the continued challenges faced by taxpayers during the filing period and demonstrates KRA’s recognition of the technical difficulties that disrupted normal return filing and payment services. The authority appreciates the large turnout of taxpayers attempting to file their returns and emphasizes that this waiver represents their commitment to supporting taxpayers while maintaining compliance with tax obligations. Kenyans are advised to take advantage of this extended timeline to complete all their returns and settle any outstanding taxes before the July 5th deadline expires.
The Kenya Revenue Authority (KRA) has granted Kenyan taxpayers a crucial extension following technical difficulties that plagued the iTax system during the sunset filing date of June 30, 2025. The deadline for filing 2024 income tax returns has been pushed to July 1, 2025, providing relief to millions of taxpayers who struggled to meet the original deadline due to system downtime.
The iTax System Crisis
The extension comes after widespread complaints from taxpayers who encountered system failures while attempting to file their annual income tax returns on the June 30 deadline.
The iTax portal, Kenya’s primary digital platform for tax compliance, experienced significant technical challenges during the final hours of the filing period, preventing many taxpayers from submitting their mandatory returns.
KRA had previously implemented extensive measures to support taxpayers during the filing period, including extending service center operating hours to 17 hours on the final day (from 7 AM to midnight) and operating select centers on Saturdays. Despite these preparations, the system’s technical failures necessitated the deadline extension.
Legal Requirements and Compliance Framework
Under Kenyan tax law, every individual with a KRA Personal Identification Number (PIN) must file an annual income tax return by June 30, regardless of whether they earned income during the tax year. This mandatory requirement applies to employed individuals, self-employed persons, business owners, farmers, and even those with no income, who must submit a NIL return.
The filing obligation extends to various categories of taxpayers including those with multiple income sources, beneficiaries of estates, partners in partnerships, and individuals with foreign income.
Employed individuals must obtain their P9 forms from employers and file accordingly, while self-employed individuals need to prepare comprehensive financial statements and relevant documentation.
Penalties and Financial Implications
The extension provides critical relief from KRA’s penalty structure, which imposes significant financial consequences for non-compliance. Late filing attracts a penalty of KES 2,000 or 5% of the tax due, whichever is higher. Additionally, late payment carries a 5% penalty on unpaid tax plus 1% monthly interest until full settlement.
For taxpayers with multiple years of unfiled returns, accumulated penalties can become substantial, making compliance increasingly difficult. The extension offers an opportunity to avoid these penalties while regularizing tax affairs.
Ongoing Tax Amnesty Program
The filing extension coincides with KRA’s comprehensive Tax Amnesty Program, which runs until June 30, 2025, offering taxpayers significant relief on historical tax debts. Under this program, KRA has already waived over KES 140 billion in penalties, interest, and fines, benefiting more than 1.9 million taxpayers.
The amnesty covers all tax debts accrued up to December 31, 2023, with automatic waivers for taxpayers who have cleared their principal taxes. Those with outstanding principal taxes can apply through the iTax system and establish payment plans for full settlement by the June 30, 2025 deadline.
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