KRA Introduces Phased Filing of Annual Income Tax Returns to Curb Last-Minute Rush
The Kenya Revenue Authority (KRA) has announced sweeping changes to the annual income tax return process, unveiling a phased filing system that will take effect from the 2026 filing season. The move is aimed at reducing last-minute congestion on the iTax platform while offering taxpayers a more personalised and efficient filing experience.
In a statement issued on Thursday, February 5, KRA said the new approach marks a shift from the traditional one-size-fits-all filing model, which often results in system slowdowns as millions of Kenyans rush to meet the June 30 deadline.
“Anyone who holds a KRA Personal Identification Number (PIN) is required to file tax returns annually, regardless of income status,” the authority said. “For 2026, we are introducing something different: a phased filing approach that treats you like the individual you are, not just another PIN.”
According to KRA, the phased system is designed to ensure that taxpayers receive relevant information at the right time, rather than broad instructions that may not apply to their specific income circumstances. The authority said the changes are informed by data showing that a significant number of taxpayers struggle with filing requirements or wait until the final days of the filing window, overwhelming both the system and support services.
Under the new framework, taxpayers will be grouped based on the complexity of their income, rather than being required to file simultaneously. KRA will issue targeted SMS and email notifications to guide each group on when and how to file their returns.
The first category will consist of taxpayers who earned employment income only in the 2025 year of income. For this group, KRA said the filing process will be significantly simplified, with returns pre-populated on the iTax system using employer-submitted data.
Taxpayers in this category will only be required to review their employment details, confirm accuracy, and submit their returns.
The second group will include individuals who earned employment income alongside additional sources, such as rental income, consultancy fees, or income subject to withholding tax. KRA said these taxpayers will receive tailored guidance reflecting their specific income streams to help reduce errors and under-declaration.
The third category will target nil filers and non-filers who previously declared no income or failed to file returns but earned income subject to withholding tax. According to KRA, many taxpayers in this group are often unaware that they are still required to file returns and may even be eligible for refunds.
“We will proactively reach out to these taxpayers with personalised information to help them understand their obligations and, where applicable, claim refunds,” the authority stated.
KRA noted that the phased approach is expected to deliver several benefits, including reduced confusion, less pressure as deadlines approach, faster filing, and improved compliance levels. The authority also believes the system will enhance voluntary tax compliance by making the process clearer and more taxpayer-friendly.
The revenue body urged taxpayers to ensure their contact details, particularly phone numbers and email addresses, are up to date on the iTax platform to avoid missing important notifications.
“Taxpayers should be ready to receive SMS and email alerts with personalised filing instructions. Keeping your contact information updated on itax.kra.go.ke will be critical,” KRA said.
The changes come as KRA continues to modernise its tax administration systems, leveraging data and technology to improve service delivery while expanding the tax base. Officials say further details on the rollout timeline and public awareness campaigns will be communicated ahead of the 2026 filing season.
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KRA Introduces Phased Filing of Annual Income Tax Returns to Curb Last-Minute Rush
