The Kenya Revenue Authority (KRA) announced on Monday, June 30, that a technical glitch in their system led to taxpayers being granted an additional five days to file annual returns—the first such extension since the week-long extension under former KRA chief John Njiraini in 2012.
While the deadline extension is a welcome move, it is likely that many taxpayers will still fail to file returns by the new deadline of July 5, whether knowingly or unknowingly. It remains to be seen how this will play out.
Though the extension took effect four days ago, Kenyans continue to express frustration on the social media platform X. Why? You may ask.
David Maina, one user, wrote: “You better fix the system instead of extensions. For two days I have been unable to file my PAYE; I cannot even download the new PAYE template, and the system does not allow password changes.”
Lawyer Olivia Chelagat added, “You gave notice of an extension until July 5 to file returns. I filed yesterday evening, July 2, but I’ve been fined.”
Benjamin Mutie requested, “Let them extend the deadline by one week, Mr. President,” while Fidel Mugira, another X user, expressed frustration: “I have been trying to file my returns ahead of the July 1 deadline, but the website is never working.”
Does this mean that taxpayers racing against the clock did not file early enough, or are they simply unaware? Filing returns early—say, by April 26—would have avoided these inconveniences. As Michael Joseph once remarked over a decade ago, Kenyans have “peculiar” habits. This seems especially true based on the complaints from frustrated taxpayers.
KRA, however, is committed to honoring its promise of extending the filing window and waiving penalties, stating: “There will be a waiver for any interest or penalties accrued due to late filing for the year of income ending December 30, 2024, provided that the returns are filed by July 5, 2025.”
Filing numbers and revenue collection
As of June 30, 2024, a record 8,046,029 tax returns had been filed—falling short of the 7,187,932 target compared to 6,385,523 returns filed the previous year. At the same time, revenue mobilization for the 2023/2024 financial year rose by 11.1%, up from 6.4% the previous year, as KRA collected Sh2.407 trillion compared to Sh2.166 trillion previously.
This good performance was achieved despite economic shocks including the depreciation of the Kenya Shilling against the US Dollar, rising bank lending rates, and international conflicts disrupting supply chains. These factors affected revenue mobilization efforts.
Whether this year’s numbers will show similar growth remains to be seen. Exchequer revenue grew by 9.5% as KRA collected Sh2.223 trillion compared to Sh2.030 trillion the previous financial year (2024/25), translating to a performance rate of 95.8%.
Revenue collection on behalf of other agencies
KRA also collects revenue on behalf of other government agencies, mainly at ports of entry. These include the Road Maintenance Levy, Air Passenger Service Charge, Aviation Revenue, Petroleum Development Fund, Petroleum Regulatory Levy, Housing Levy, among others.
For the financial year ending June 30, 2024, KRA collected Sh184.036 billion in agency revenues, reflecting a growth of 34.9% compared to the previous year.
System challenges on filing deadline day
Due to the high volume of taxpayers attempting to file returns on June 30, the system experienced technical difficulties that disrupted normal filing and payment services, preventing many from submitting returns on time, KRA Commissioner-General Humphrey Wattanga said in a notice issued on July 1, 2025.
KRA has guaranteed a waiver of all late filing penalties provided returns are filed by July 5. This underscores the timely amendments in the Finance Bill 2025, especially Section 89 of the Tax Procedures Act.
“Cognizant of the challenges faced by taxpayers and in line with Section 89(5a)(b) of the Tax Procedures Act, KRA assures the public that we will waive any interest or penalties accrued due to late filing of end-year returns for the year ending December 31, 2024, provided the returns are filed by July 5, 2025,” said Mr. Wattanga. He added that about 81% of 9.669 million active taxpayers filed returns and paid taxes on time by June 30, 2024.
