Kenyans may soon be required to file their tax returns earlier than usual if a new proposal in the Finance Bill 2026 is approved.
The changes, introduced by Treasury Cabinet Secretary John Mbadi, seek to move the tax filing deadline from June 30 to April 30 starting in 2027.
If passed by Parliament, this will mean both individuals and companies will have two months less to prepare and submit their tax returns.
Currently, taxpayers who operate on the normal tax year calendar from January through December will have until June 30 to complete the filing of their returns in the subsequent year.
However, according to the new proposal, such individuals and companies will now be required to complete their filings within one month after the tax year, meaning by April.
The amendments are part of those being made to the Income Tax Act and will be in line with the payment deadline which is earlier for some businesses.
The amendment bill further requires individuals or companies that will not owe any taxes to file their nil returns within one month from the date of ending the financial year. It means that such returns will be filed by January 31 instead of June 30 like currently.
The tax officials are keen to point out that these changes will help improve efficiency in tax collection.
According to media reports, the new rules and regulations proposed by the Finance Bill will soon see public participation before any decision is finally taken.
Should these be adopted, they will begin to take effect from January 1, 2027.
For now, Kenyans await keenly the outcome of the Finance, with the proposed changes likely to affect millions of taxpayers across the country.
