The Kenya Revenue Authority (KRA) is under public pressure after a surge of technical problems on its iTax system left thousands of Kenyans unable to file their 2024 tax returns by the initial June 30 deadline. Amid growing frustration and calls for accountability, the Commission on Administrative Justice (CAJ)—also known as the Office of the Ombudsman—has formally urged KRA to waive penalties for affected taxpayers and overhaul its digital systems to prevent a recurrence.
In a public statement issued by acting chairperson Charles Dulo, the Ombudsman acknowledged KRA’s move to extend the filing deadline but emphasized that the disruptions unfairly penalized law-abiding citizens attempting to meet their statutory obligations.
Technical Glitches Plague the iTax Portal
For several days leading up to June 30, 2025, the iTax portal, Kenya’s official digital tax filing system, suffered major disruptions. Users attempting to file their returns were met with error messages, most commonly the dreaded “An error has occurred” notice. The glitch effectively locked out numerous taxpayers who had waited until the final days of the deadline to submit their information—some after repeated failed attempts earlier in the month.
After confirming public complaints, CAJ stated:
“The Commission proceeded to verify the complaints raised and confirmed that the iTax system had indeed failed. Penalising taxpayers under such circumstances is not only unjust but also undermines public trust in the country’s tax administration.”
KRA Extends Deadline Amid Mounting Pressure
In response to the technical chaos and public outcry, KRA initially extended the filing deadline by 24 hours to midnight on July 1. However, as system instability persisted, the authority announced another extension, this time pushing the new deadline to July 5, 2025.
This final extension was accompanied by a public assurance that no penalties or interest would be charged for returns filed by the new deadline. Citing Section 89 (5a)(b) of the Tax Procedures Act, KRA clarified:
“We will undertake to waive any interest or penalties that may accrue due to late filing of the end-year returns for the year of income ending 31st December, 2024, provided that such returns are filed by 5th July, 2025.”
Calls for Broader Accountability
While the deadline extension and waiver announcement have been welcomed, many Kenyans—and the Ombudsman—believe KRA must do more to restore public confidence. Beyond the system outage, the mass text messages sent by the Authority, warning of unpaid taxes without proper explanation, have fueled widespread panic and distrust.
According to the Ombudsman:
“These actions have caused widespread confusion, distress, and panic, raising fundamental questions about procedural fairness, administrative justice, and institutional accountability.”
Many taxpayers, especially those in informal employment or with nil returns, were unsure whether the threatening messages applied to them or were a mistake, given the ongoing system failure.
Kenya’s Digital Tax Filing Burden
Under Kenyan tax law, every individual with a KRA PIN certificate is required to file annual tax returns by June 30 of the following year, regardless of their employment status. This includes students, unemployed individuals, and business owners. Those who fail to file are subjected to automatic penalties, which can range from KSh 2,000 for individuals to KSh 20,000 for businesses.
The iTax portal was introduced to streamline this process. However, the recent technical breakdowns highlight the fragility of Kenya’s digital tax infrastructure, especially during high-demand periods. Critics argue that the system is ill-prepared to handle last-minute surges, and the lack of clear contingency plans only exacerbates the issue.
Public Sentiment and the Need for Reform
Across social media platforms, the hashtags #iTaxFailure and #KRAPenalties have trended, reflecting nationwide anger and ridicule directed at the tax authority. Several users shared screenshots of the error messages, while others called for a complete audit of the iTax platform and its backend support systems.
One frustrated user on X (formerly Twitter) wrote:
“We pay taxes. We follow the rules. And in return, we get a broken system and penalties for their failures. KRA needs to be held accountable.”
Tax experts and civil society organizations have echoed these concerns. Many are now urging the government to launch an independent investigation into the iTax system’s reliability, KRA’s emergency response protocols, and its communication practices.
KRA Keeps Service Centres Open for Support
In an effort to address the backlash, KRA announced that all its Tax Service Offices (TSOs) across the country would remain open between 8am and 8pm from June 30 through July 5 to assist taxpayers with filing. They also promised enhanced technical support during this critical window.
While this is a step in the right direction, stakeholders argue that it may be too little too late, especially for those who had to incur extra costs, lost time, and emotional distress in the scramble to file returns during the failure.
Way Forward: Key Demands from the Ombudsman and the Public
The Ombudsman’s statement outlines several key demands aimed at safeguarding taxpayers in future filing seasons:
- Automatic Waiver of Penalties for all affected users during the system downtime period.
- Improved Infrastructure for the iTax system to handle high traffic loads.
- Transparent Communication from KRA, including full explanations for SMS tax debt alerts.
- Policy Review of digital tax procedures and emergency fallback options.
- Institutional Accountability to ensure that failures are properly investigated and rectified.
Conclusion: A Test of Public Trust in KRA
The events surrounding the 2024 tax return filing season have cast a spotlight on both the strengths and weaknesses of Kenya’s tax administration system. While the KRA’s extension and penalty waiver are welcome reliefs, they fall short of fully addressing the systemic failures and procedural lapses that led to mass frustration.
Going forward, the Authority will need to invest in more robust digital infrastructure, better public communication, and responsive leadership to maintain taxpayer confidence and meet its mandate fairly.
For now, Kenyan taxpayers are watching closely, hoping that this year’s ordeal leads to lasting reform—not just temporary relief.