Kenyans who file nil returns could soon be required to submit them much earlier than before under a new proposal by the National Treasury aimed at easing pressure on the tax filing system.
Treasury Cabinet Secretary John Mbadi has announced plans to introduce a staggered tax returns filing schedule that will see different categories of taxpayers submit their returns at different times of the year.
Speaking during an X Space discussion on Thursday, Mbadi said the changes are intended to address the annual scramble that often occurs as taxpayers rush to beat the June 30 deadline.
For years, all taxpayers have been required to file their returns by the end of June, regardless of whether they are salaried employees, business owners or individuals with no taxable income. The rush, especially in the final days, has frequently overwhelmed the iTax system, leaving some taxpayers unable to file on time and exposing them to penalties.
Mbadi said the government wants to change that by spreading out the filing periods.
Under the proposed arrangement, taxpayers filing nil returns will be expected to submit them immediately after December each year. Salaried employees will then file their returns between January and April, while business owners and other taxpayers engaged in commercial activities will continue using the June 30 deadline.
According to the CS, the move is aimed at reducing congestion on the tax platform and making the filing process smoother for everyone.
“Previously, we had one filing date of June 30 in the country, and many Kenyans would wait until the last day. When the system fails, people end up getting penalties even when the delays are not their fault,” Mbadi explained.
He said the staggered approach would help distribute traffic on the system throughout the year while improving compliance among taxpayers.
The announcement comes just weeks after the Kenya Revenue Authority (KRA) introduced the “PIN with No Obligation” category, a move that effectively removed the requirement for some individuals to file nil returns.
The new framework allows eligible residents and non-residents who are not earning taxable income to register for a PIN with No Obligation status. Those under the category are not required to submit annual tax returns.
KRA had presented the change as a major relief for thousands of Kenyans who previously had to file nil returns every year despite having no taxable income.
However, Mbadi’s recent comments show nil returns will stay in the tax filing system. The Treasury wants to give them a separate filing window as part of bigger reforms.
This move signals the government’s push to modernize tax administration and ease the tech issues common during tax season each year.