The Kenya Revenue Authority has come under fresh scrutiny over alleged system inefficiencies. Business groups opposed a Finance Bill 2026 proposal seeking to shorten annual tax return filing deadlines.
Stakeholders raised concerns while appearing before the National Assembly Finance Committee on Monday, May 25. They warned that KRA’s current technical problems would make compliance difficult for taxpayers.
The proposal in the Finance Bill 2026 seeks to move the annual filing deadline from June 30 to April 30. If approved, taxpayers will have two fewer months to submit returns every year.
Business Groups Raise Concerns Over KRA Systems
The Kenya Private Sector Alliance led the opposition against the proposal before lawmakers. The group argued that KRA systems continue experiencing repeated technical failures during filing periods.
KEPSA warned that introducing tighter timelines without fixing system challenges would frustrate taxpayers further. Businesses already face delays caused by system downtimes and filing disruptions.
Stakeholders also argued that many companies complete audits after April. They said the shorter timeline would force firms to rely on estimated financial statements.
According to the groups, inaccurate estimates may expose businesses to future disputes with tax authorities. They urged Parliament to reconsider the proposed changes before implementation.
Pressure Mounts Over Finance Bill Proposal
The proposal forms part of broader tax measures included in the Finance Bill 2026. The government says the changes aim to improve tax administration and revenue collection efficiency.
However, private sector players argue that KRA must first strengthen its digital infrastructure. They warned that the authority lacks adequate system capacity to support accelerated filing deadlines.
Business representatives also questioned whether KRA conducted enough stakeholder consultations before introducing the proposal. Some lawmakers echoed concerns about the readiness of taxpayers and tax systems.
Debate Over Tax Compliance Intensifies
The discussions come as taxpayers continue complaining about difficulties using KRA’s online platforms. Technical failures have repeatedly affected return submissions during peak filing periods.
Critics now fear the proposed deadline changes could increase pressure on businesses and individual taxpayers. Many companies may struggle to finalize audited accounts before the proposed April deadline.
The Finance Committee will continue reviewing views from stakeholders before making recommendations on the bill. Parliament will later debate the proposed tax measures before any final approval.
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