On 17 September 2026, the Kenya Revenue Authority (KRA) announced a waiver of penalties and interest accrued by taxpayers who were unable to file returns or make payments due to technical downtime of the iTax portal. The notice, issued under the Commissioner-General’s discretionary powers under Section 38 of the Tax Procedures Act 2015, covers specific periods of system unavailability recorded between July and August 2026. The waiver applies automatically to affected taxpayers who attempted to comply during the outage windows, provided they can demonstrate the system error through screenshots or system-generated error logs.
Key Takeaways
- Automatic Relief for Documented Outages: KRA has identified specific dates and timeframes when the iTax portal experienced significant downtime. Taxpayers who experienced failed submissions or payment processing during these windows will have penalties and interest waived automatically upon verification of system logs. No separate application is required; however, taxpayers should retain evidence of attempted compliance for audit purposes.
- Scope of Waiver and Exclusions: The waiver covers late filing penalties (under Section 83 of the Tax Procedures Act) and late payment interest (under Section 37) for income tax (PAYE, corporate tax, turnover tax), VAT, excise duty, and withholding tax returns due during the affected periods. It does not extend to penalties for substantive non-compliance such as under-declaration of income, fraudulent claims, or failure to register for tax obligations.
- Reinforcement of Digital Service Reliability: The notice underscores KRA’s commitment to improving the reliability of its digital tax administration platforms. KRA has engaged its technology partners to implement redundancy measures, enhance server capacity, and establish a dedicated taxpayer support channel for real-time assistance during future outages. Taxpayers are encouraged to file returns well before deadlines to mitigate last-minute technical risks.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement