The Kenya Revenue Authority (KRA) has announced a significant change to the country’s tax filing calendar, bringing forward the deadline for individual income tax returns from June 30 to April 30. The new deadline is contained in the Finance Act 2026, which was signed into law by President William Ruto. The changes will take effect on January 1, 2027. According to KRA, the adjustment is intended to improve tax administration by giving the authority more time to review returns, verify taxpayer information and prepare for the upcoming financial year.
New April Deadline to End June Filing Rush
Under the new arrangement, individual taxpayers will be required to submit their annual income tax returns by the end of the fourth month following the close of the tax year. Treasury Cabinet Secretary John Mbadi said the change would help address the annual rush experienced towards the June 30 deadline.
For years, the final days before the June deadline have seen millions of taxpayers attempt to access the iTax platform at the same time, often resulting in heavy traffic, system slowdowns and difficulties completing returns. The government expects the April deadline to distribute filing activity more evenly and reduce pressure on the tax system.
Who Will Be Affected?
The revised deadline will mainly apply to individual taxpayers, including:
- Employees earning income under the Pay As You Earn (PAYE) system
- Self-employed individuals
- Resident individuals with different sources of income
- Partnerships
KRA officials have said the earlier deadline will also give the authority additional time to conduct compliance checks and validate information before the start of the next financial cycle.
However, companies and other non-individual taxpayers will continue to file their returns by the last day of the sixth month after the end of their accounting period. This means the June 30 deadline will generally remain applicable to companies under the existing filing framework.
Late Filing Penalties Remain
Taxpayers who fail to submit their returns within the prescribed period will continue to face penalties. Individuals who file late will be required to pay 5 percent of the tax due or KSh.2,000, whichever is higher. For companies, the penalty will remain at 5 percent of the tax due or KSh.20,000, whichever is higher. KRA has encouraged taxpayers to adjust their compliance schedules early and ensure their financial records are ready well ahead of the new April deadline.
KRA Plans Further iTax Improvements
The deadline change forms part of broader efforts by the government to modernise tax administration and improve revenue collection. KRA is also expected to continue upgrading the iTax system to better manage traffic during filing periods. The authority is working towards expanding the use of pre-filled returns using information submitted by employers and businesses, a move expected to make the filing process easier and more efficient for taxpayers.
The Finance Act 2026 also introduced other tax reforms, including changes affecting import documentation and the reporting of rental income earned by non-residents. The government says the overall reforms are aimed at strengthening compliance, improving efficiency and creating a more effective tax administration system.
