The Kenya Revenue Authority has been urged to waive penalties and urgently address failures in the iTax system following a surge of public complaints and technical breakdowns in the run-up to the initial June 30 deadline.
In a statement, the Office of the Ombudsman, through acting chairperson Charles Dulo, commended the KRA for swift action in extending the deadline for filing returns to July 5 but urged the Authority to waive penalties for those who were unable to meet the strict deadline due to technical challenges.
According to Dulo, disruptions in the KRA portal left taxpayers at a disadvantage, leading to the failure of some of them to file their returns on time.
As such, the Commission on Administrative Justice (CAJ) observed that it would be unjust to penalise taxpayers for non-remittance.
"The Commission, in cognisance of the widespread public outcry regarding the iTax system failure, proceeded to verify the complaints raised and confirmed that the iTax system had indeed failed, highlighting the 'an error has occurred' message," their statement said.
"It was noted that these disruptions were impeding taxpayers' ability to file returns in compliance with statutory obligations. The Commission posited that penalising taxpayers for non-remittance under such circumstances was not only unjust but also undermines public trust in the integrity and fairness of the country's tax administration system."
The Ombudsman’s intervention followed nationwide frustration among Kenyans who decried being unable to access or use the iTax platform during the final days leading up to the June 30 deadline.
Initially, the KRA extended the deadline to midnight on Tuesday, July 1, to give more Kenyans time to file their returns following technical challenges experienced on the final day.
After another spate of technical difficulties, KRA once again extended the deadline for filing tax returns by four more days to July 5.
The authority also announced a penalty and interest accrued waiver for all taxpayers, provided they file their 2024 tax returns by the new deadline.
"Cognisant of the challenges faced by taxpayers during the period and taking into account the provisions of Section 89 (5a) (b) of the Tax Procedures Act, KRA assures the public that we will undertake to waive any interest or penalties that may accrue due to late filing of the end-year returns for the year of income ending 31st December, 2024, provided that such returns are filed by 5th July, 2025," the statement reads.
Despite efforts by the taxman to offer some relief to Kenyans, the Ombudsman was also critical of the fact that mass SMS messages were being sent just days before the deadline, alleging tax debts without proper explanations.
“These actions have caused widespread confusion, distress, and panic, raising fundamental questions about procedural fairness, administrative justice, and institutional accountability," the commission noted.
In its June 30 announcement, KRA revealed that all its service centres would remain open from 8am to 8pm to facilitate last-minute filing and offer support to taxpayers.
Every Kenyan who holds a KRA PIN certificate is expected to file their returns every year by the end of June the next year, regardless of their employment status.
