Thousands of Kenyan taxpayers who were racing against the clock to beat the June 30 deadline for filing their income tax returns have been granted a 24-hour reprieve, following an official announcement by the Kenya Revenue Authority (KRA) on Monday night.
The deadline, originally set to expire at midnight on Monday, June 30, 2025, has now been extended to midnight on Tuesday, July 1, 2025.
KRA stated that the decision was informed by technical difficulties experienced on the iTax system, which left many users unable to complete their submissions on the final day.
“We have opened the service lane! 24-hour extension up to tomorrow, July 1, 2025, midnight to file and pay your returns!” read KRA’s official statement on X (formerly Twitter).
Extended Office and Support Hours
To further assist Kenyans during this last-minute window, KRA has expanded operating hours at service centres across the country. Offices will now remain open from 8:00 a.m. to 8:00 p.m., and the KRA contact centre will be operational from 7:00 a.m. to 8:00 p.m. on Tuesday, July 1.
These measures aim to accommodate the large volume of taxpayers who were either locked out due to system slowdowns or couldn’t access assistance before the initial cutoff.
Who Must File: Not Just Salaried Employees
KRA has reiterated that filing annual income tax returns is a mandatory legal obligation for all registered taxpayers, regardless of whether they earned income or not.
The groups required to file include:
- Salaried employees (even if PAYE is deducted at source)
- Self-employed individuals (e.g. consultants, freelancers)
- Landlords receiving rental income
- Farmers engaged in commercial agriculture
- Students or unemployed individuals with a KRA PIN (must file NIL returns)
“Filing must be done even if your employer already deducts PAYE,” KRA emphasized. “Even those with zero income are required to file a NIL return to remain compliant.”
Failure to file may lead to KRA compliance issues, including denial of tax compliance certificates, access to government services, or issues with banking and loan applications.
Penalties for Late Filing and Non-Compliance
KRA has also reminded taxpayers of the financial implications of failing to meet the deadline.
Late filing penalties include:
- Ksh2,000 or 5% of the tax due, whichever is higher, for individuals.
- Ksh20,000 or 5% of the tax due for non-individuals (e.g. companies, trusts).
In addition:
- A 5% penalty applies on any unpaid tax after the deadline.
- A 1% monthly interest is charged on outstanding tax amounts until fully settled.
These penalties can accumulate quickly and may create a significant financial burden for individuals and small business owners.
Why the Extension Matters: A History of Last-Minute Rush
Every year, Kenya witnesses a massive spike in tax filings during the final days of June. System congestion, long queues at service centres, and delays in processing are common issues.
To manage this annual surge, KRA had already extended operating hours earlier in May 2025, including service centres and Huduma Centres, to accommodate the high number of 2024 income tax returns being processed ahead of the deadline.
However, despite these preparations, technical difficulties persisted on the final day, leading to iTax users experiencing timeouts, login errors, and slow processing speeds.
“I tried the whole day but couldn’t log in to submit my return. I’m glad they’ve extended it,” said James Otieno, a small business owner in Kisumu.
How to File During the Extension: Step-by-Step iTax Guide
To take advantage of the 24-hour extension, here is a quick step-by-step guide for filing your KRA returns via the iTax portal:
For Employed Individuals (With PAYE):
- Visit https://itax.kra.go.ke and log in using your KRA PIN and password.
- Under “Returns,” click on “File Return.”
- Select the Income Tax – Resident Individual option.
- Download the Excel Return Form, fill it out using your P9 Form from your employer.
- Upload the completed form, then submit.
- Download and save the acknowledgment receipt.
For NIL Return (No Income Earned):
- Log in to the iTax portal.
- Navigate to “File Nil Return.”
- Select the applicable tax obligation (e.g. Income Tax Resident Individual).
- Confirm your details and submit.
- Save the acknowledgment receipt as proof of compliance.
What Happens After July 1?
KRA has been clear that no further extension will be granted beyond July 1, 2025. Those who fail to file by then will automatically incur late filing penalties, even if they eventually submit their returns later.
The extension is a last resort to ensure compliance, particularly for those who made attempts on June 30 but were locked out due to technical errors.
“This is a compliance window, not a holiday. We expect all eligible taxpayers to fulfill their legal obligations,” said a KRA official.
Public Reactions: Relief and Frustration
News of the extension was met with mixed reactions from Kenyans online. Many expressed relief, while others criticized KRA for inadequate system preparedness.
@Jojo254 tweeted:
“So we spent hours refreshing iTax for nothing? You guys should have anticipated the load!”
@NyokabiMuturi wrote:
“Thanks, KRA! I had nearly given up after getting locked out all day. Now to file first thing tomorrow.”
Others called for KRA to invest in better digital infrastructure, noting that tax compliance shouldn’t depend on system luck.
Key Takeaways
- KRA has extended the 2025 income tax filing deadline to midnight on Tuesday, July 1, due to technical challenges on iTax.
- All taxpayers with KRA PINs, including salaried workers, landlords, business owners, and jobless individuals, must file returns.
- Late filing penalties start at Ksh2,000 or 5% of tax due and can accumulate monthly.
- KRA offices and contact centres will offer extended support hours on July 1 to help last-minute filers.