KRA Reveals Removal of Penalties on Tax Returns Filed During Extended Period

The Times Tower housing the KRA offices in Nairobi.
KRA offices in Nairobi.
Photo
Kenya Insights

The Kenya Revenue Authority (KRA) now says it has removed penalties for Kenyans who filed their income tax returns during the extended deadline.

In a brief statement on Thursday, August 21, the Authority noted that the process of removing the penalties for those who filed their returns between July 1 and July 5 was complete.

While acknowledging the mistake, KRA noted that the penalty imposed on the taxpayers was an error that had since been vacated.

"Kindly note that the process of penalty removal for the year 2024 for all those who filed during the extended period from 1st to 5th July 2025 was completed. Please note that the penalties have been vacated," KRA announced.

KRA
Kenya Revenue Authority offices
Photo
KRA

The move follows concerns from a section of Kenyans who lamented receiving penalty notifications despite filing their tax returns within the extended 5-day period.

An income tax return is a declaration of income earned by an individual within a particular year. Every individual with a KRA PIN is required to file this return every year, regardless of whether they earned an income or not.

Meanwhile, the clarification comes weeks after KRA extended the tax filing deadline after its system experienced technical difficulties, which disrupted the normal functioning of the tax returns filing process.

The sudden disruption which occurred on June 30, which is the deadline day, prevented thousands of taxpayers from submitting their returns on time, forcing KRA to intervene.

Notably, the law allows KRA to waive penalties and interests imposed on taxpayers, but only if it is determined that the reason for non-compliance was beyond their control.

During the filing period, KRA also extended its working hours and added more clinics across major towns to help taxpayers file their 2024 income tax returns.

According to the Authority, as of June 30, about 81 per cent of the 9.9 million eligible taxpayers had already filed their returns. However, the authority has not disclosed the exact number of Kenyans who filed their returns during the extended period.

"KRA sincerely appreciates Taxpayers for turning out in large numbers to file their income tax returns for the period ending 31 December 2024,” KRA said after the lapse of the tax returns filing period.

KRA Offices
KRA offices along Samia Park, Nairobi, May 20, 2025.
Photo
KRA
  • .