KRA warns of Kshs 2,000 fine as most Kenyans fail to file tax returns

Failure to comply could lead to a Kshs.2,000 penalty, adding financial strain to those already struggling with economic challenges.

The reminder comes as KRA intensifies efforts to boost compliance, revealing that only 2.4 million out of 8.5 million eligible taxpayers have filed their returns so far, a mere 30%.

This low turnout has prompted the tax agency to roll out additional support measures, including extended working hours and mobile filing clinics.

In a bid to assist last-minute filers, KRA has set up temporary tax assistance camps in major towns across the country.These mobile clinics, which will operate until the end of June, offer free filing support to taxpayers facing difficulties with the process.

Additionally, the authority has extended working hours at its tax service desks and Huduma Centres. From now until the deadline, selected offices will remain open from 7:00 am to 7:00 pm on weekdays and from 9:00 am to 1:00 pm on Saturdays.

On the final day, June 30, KRA offices will operate for an unprecedented 17 hours, staying open until midnight to accommodate late filers. Many Kenyans mistakenly believe that if they have no taxable income, they are exempt from filing.

However, KRA insists that even individuals without earnings must submit a nil return, a declaration that they had no income during the financial year.This applies to unemployed individuals, dormant businesses, and those whose ventures did not generate revenue.

Failing to file, whether one owes taxes or not, attracts the same penalty.The Kshs 2,000 fine is automatic once the deadline passes, and non-compliant taxpayers may also face difficulties when applying for crucial documents like compliance certificates, which are often required for loans, tenders, and travel permits.

Taxpayers can submit their returns through KRA’s iTax portal (itax.kra.go.ke), at Huduma Centres, or by visiting any KRA office.

Those who need assistance can take advantage of the ongoing mobile clinics, where officials guide users through the process free of charge.KRA has also been conducting public sensitisation forums, such as a recent session in Eldoret, where officials emphasized the importance of timely filing.

During the meeting, they noted that despite awareness campaigns, millions of Kenyans still delay submissions until the last minute, a habit that often leads to system overloads and processing delays.

With just over a month left before the deadline, KRA is urging all eligible taxpayers to act swiftly.The authority has stressed that penalties will be strictly enforced, and no extensions will be granted beyond June 30.