The Kenya Revenue Authority (KRA) has come under scrutiny over alleged system inefficiencies as stakeholders opposed a Finance Bill 2026 proposal seeking to shorten the annual tax return filing deadline by two months.
Appearing before the National Assembly’s Finance Committee on Monday, May 25, business groups warned that KRA’s existing technical challenges would make it difficult for taxpayers to comply with the tighter timelines.
The stakeholders argued that before introducing stricter filing deadlines, KRA must first address recurring failures within its tax filing systems, which they said have frustrated taxpayers during previous filing periods.
According to the proposal in the 2026 Finance Bill, taxpayers will soon be required to file annual tax returns by April 30 every year instead of the current June 30 deadline.
Kenya Revenue Authority building at Times Towers
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The stakeholders, led by Kenya Private Sector Alliance (KEPSA), warned that reduced timelines would force businesses to submit returns based on estimated financial statements due to delays in audits and approvals.
KEPSA further argued that KRA’s systems were not adequately prepared to handle the increased pressure that would come with accelerated filing deadlines.
They cited difficulties experienced by taxpayers during previous filing cycles, claiming many businesses encountered technical glitches accessing KRA systems to submit returns.
“Preparing tax returns depends heavily on finalising audited financial statements, which requires completing audits, resolving queries, and obtaining board approvals,” KEPSA told the committee.
The business alliance warned that rushing the filing process would likely increase errors, amendments and disputes between taxpayers and the taxman.
Tax advisory firm Grant Thornton also questioned the practicality of the timelines, saying businesses require sufficient time and predictable systems to ensure compliance.
The concerns caught the attention of Committee Chairperson Kuria Kimani, who acknowledged the complaints raised against KRA and pledged to push the authority to improve its backend systems.
“Honourable members, I think that the issues the stakeholders are raising are relevant and we need to put KRA to task to ensure they offer the necessary support to taxpayers to meet their obligations,” Kimani stated.
Despite the criticism, some lawmakers defended the proposal, arguing that companies should improve efficiency and adopt technology to comply with the new timelines.
The Finance and Planning Committe Chairperson and Molo Kuria Kimani during a public engagement exercise at Kenyatta International Conference Centre(KICC) in Nairobi on November 25, 2024.
National Assembly
