KRA Waives iTax Penalties and Interest After September System Downtime

KRA Waives iTax Penalties and Interest After September System Downtime

The Kenya Revenue Authority (KRA) has announced a waiver of penalties and interest incurred by taxpayers who were unable to file returns or make payments on time because of disruptions on the iTax platform.

The relief applies to penalties and interest directly linked to verified periods when affected iTax services were unavailable or intermittently accessible in September 2026.

In a public notice issued on Wednesday, September 16, KRA said the disruption affected key services on its digital platform, including return filing and payment functions.

The announcement comes days before the September 20 deadline for filing Value Added Tax (VAT) returns, increasing pressure on taxpayers who had experienced difficulties accessing the system.

KRA said it would review individual cases and identify the penalties and interest that arose specifically from the confirmed periods of system downtime.

“We will review penalties and interest incurred by taxpayers against the confirmed periods of iTax system downtime when processing the waiver.”

The authority clarified that the waiver will not automatically apply to every penalty or interest charge appearing on a taxpayer’s account.

Instead, KRA will determine whether the charge was caused by the verified iTax disruption before removing it.

The decision is being implemented under Section 89(5A) of the Tax Procedures Act, which provides a legal basis for waiving penalties and interest in circumstances covered by the law.

KRA formally acknowledged the impact of the technical problems on taxpayers who were attempting to meet their tax obligations.

“Kenya Revenue Authority (KRA) wishes to inform taxpayers that, following the recent intermittent downtime of the iTax portal, which affected the normal functioning of return filing and payment services, the Authority will waive penalties and interest accrued as a result of the system downtime in September 2026.”

The affected services include the filing of tax returns and making payments through the iTax platform.

VAT taxpayers were among those affected, with some reporting difficulties accessing the system as the September 20 deadline approached.

The disruption also raised concerns among businesses and individuals who rely on iTax to complete mandatory tax compliance processes without visiting KRA offices.

On September 16, the tax authority confirmed that its iTax platform was experiencing intermittent disruptions. KRA said technical teams were working to restore normal services and address the problems affecting users.

However, the authority did not specify the exact duration of the latest downtime in the notice announcing the waiver.

It also did not state that every affected iTax service had been fully restored at the time of the announcement.

The waiver is therefore expected to provide relief to taxpayers who can establish that their failure to file or pay within the required period was directly connected to the technical disruption.

Taxpayers are still expected to meet their statutory obligations and submit outstanding returns or payments once the relevant iTax services are accessible.

The announcement is particularly significant for businesses required to file VAT returns every month. Failure to meet tax deadlines can ordinarily result in penalties and interest, making timely access to KRA’s digital platforms an important part of compliance.

KRA has urged taxpayers to continue using its digital services as technical teams work to improve the reliability of the platform.

The authority also acknowledged the inconvenience caused by the disruptions and asked taxpayers for patience while efforts to stabilise the system continue.

The latest waiver highlights the growing reliance on digital platforms for tax administration in Kenya, with iTax serving as a key channel through which taxpayers file returns, make payments and manage their tax obligations.

KRA’s review of affected accounts will determine the penalties and interest eligible for removal, based on the verified periods of iTax downtime.

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KRA Waives iTax Penalties and Interest After September System Downtime