The Kenya Revenue Authority (KRA) has issued a final warning to taxpayers to file their 2025 income tax returns before the statutory deadline expires at midnight on June 30, cautioning that failure to comply will attract penalties and other enforcement measures.
In a public notice released ahead of the deadline, the tax authority said there would be no extension of the filing period, urging individuals and businesses yet to submit their annual returns to do so through the iTax platform before 11:59 p.m.
The June 30 deadline marks the close of Kenya’s annual income tax filing season, one of the busiest periods for the revenue authority as millions of taxpayers submit returns for the previous year of income.
KRA said every taxpayer with an active Personal Identification Number (PIN) and an income tax obligation is required to file an annual return, regardless of whether tax is payable. This includes salaried employees, self-employed professionals, business owners, companies and individuals with no taxable income, who are still required to file Nil Returns where applicable.
The authority warned that taxpayers who fail to meet the deadline will face statutory late-filing penalties under the Tax Procedures Act. Resident individuals who submit returns after the deadline risk a penalty of the higher of KSh2,000 or five per cent of the tax due, while additional penalties and interest may apply where outstanding tax remains unpaid.
Beyond financial penalties, KRA said taxpayers who fail to file could also be issued with default tax assessments, allowing the authority to estimate tax liabilities using information available in its records. Taxpayers would then be required to challenge or settle those assessments through the prescribed legal procedures.
The revenue authority has consistently maintained that the June 30 deadline is established by law and has ruled out any extension despite the last-minute rush that typically characterises the final days of the filing period.
The authority has also encouraged taxpayers to avoid waiting until the final hours, noting that heavy traffic on the online filing platform often leads to delays as the deadline approaches.
This year’s filing exercise also includes a temporary compliance concession relating to business expenses. KRA has allowed taxpayers filing 2025 returns to declare eligible expenses that may not yet be supported by electronic tax invoices generated through the Electronic Tax Invoice Management System (eTIMS), provided supporting documentation is submitted for subsequent verification.
The concession is expected to ease the transition to full electronic invoicing but will not apply indefinitely. KRA has indicated that beginning with the 2026 year of income, deductible business expenses will generally be required to be supported by valid electronic tax invoices, reinforcing the government’s broader tax administration reforms and digital compliance framework.
The annual filing exercise remains a critical component of Kenya’s tax administration system, enabling KRA to reconcile taxpayer records, assess compliance and mobilise domestic revenue for public expenditure. Timely filing also allows taxpayers to update their tax status, avoid enforcement action and maintain compliance with statutory obligations.
As the countdown to midnight continues, KRA has reiterated that taxpayers who have not yet submitted their returns should do so without delay, stressing that all filings completed after the deadline will be treated as late and subjected to the applicable legal penalties.
