The Kenya Revenue Authority (KRA) has finally bowed to pressure and removed penalties that were wrongly imposed on Kenyans who filed their income tax returns during the extended filing window earlier this year.
In a public statement released on Thursday, August 21, KRA confirmed that it had cleared all the penalties that appeared on accounts of taxpayers who submitted their returns between July 1 and July 5.
“Kindly note that the process of penalty removal for the year 2024 for all those who filed during the extended period from 1st to 5th July 2025 was completed. Please note that the penalties have been vacated,” the Authority announced.
The decision comes after an uproar from frustrated Kenyans who were shocked to receive penalty notifications, even though they had complied with the extension given by the taxman.
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Many taxpayers felt cheated. They argued that KRA’s system failure on June 30, the original deadline day, forced them to wait until the system was restored and the filing period officially extended.
The disruption on June 30 was major. Thousands of Kenyans had rushed to meet the deadline, only to find that the online system had crashed. This left many stranded and unable to upload their returns.
To fix the mess, KRA extended the filing deadline by five days, allowing taxpayers to file between July 1 and July 5 without facing any penalties.
However, despite the extension, some Kenyans later received automated penalty alerts. The mistake created fear and anger among taxpayers who felt they were being punished unfairly.
Tax experts quickly weighed in, reminding the public that under the law, KRA has the power to waive penalties if non-compliance is caused by reasons beyond the control of taxpayers. In this case, the technical glitch clearly qualified.
KRA has now admitted the error and confirmed that the system has been corrected. All wrongly applied penalties have been deleted from affected accounts.
The clarification was also meant to restore public trust. Many Kenyans had lost confidence in the tax system, accusing KRA of unfair treatment and poor communication.
To ease the filing process this year, KRA had increased its support services by opening more taxpayer clinics across major towns and extending working hours in their offices.
According to official data, about 81 percent of the 9.9 million registered taxpayers had already filed their returns by June 30. That means nearly 8 million people managed to meet the original deadline.
KRA has not, however, revealed how many people filed during the extra five days. The silence has left many wondering just how big the system failure impact really was.
Taxpayers who had faced the penalties are now relieved. “I filed on July 3 after the system came back, and when I saw a penalty on my account I was shocked. I’m glad KRA has corrected this,” said one Nairobi resident.
Others feel the saga is a lesson for KRA. They believe the authority must upgrade its systems to avoid future breakdowns and ensure taxpayers are not inconvenienced.
An income tax return is simply a yearly declaration of income earned. In Kenya, everyone with a KRA PIN must file a return, even if they had no income during that year.
The 2024 returns were for the period ending December 31, 2024. Failure to file attracts a fine of Ksh 2,000 for individuals and Ksh 20,000 for companies. That is why the wrongful penalties sparked such alarm.
This latest announcement is a huge relief for millions of hardworking Kenyans who had feared being forced to pay fines for a mistake they did not cause.
The bigger question now is whether KRA has learned from this episode. For many taxpayers, trust is as important as compliance. If the system breaks again, they want to be sure the authority will handle it with speed, fairness, and transparency.
For now, KRA is urging Kenyans to check their accounts and confirm that the penalties have been cleared. It has also thanked the public for filing in large numbers despite the challenges.
“KRA sincerely appreciates taxpayers for turning out in large numbers to file their income tax returns for the period ending 31 December 2024,” the authority said.
With this announcement, the chapter may be closed, but Kenyans are watching closely. The next tax season will be the real test of whether KRA has learned its lesson.
