Business groups have raised concerns over a proposal in the Finance Bill 2026 that seeks to shorten the annual tax return filing period by two months, saying the move could create major challenges for taxpayers across the country.
The proposal would see the tax filing deadline moved from June 30 to April 30 every year.
However, stakeholders warned that many businesses are already struggling with delays caused by technical failures within the Kenya Revenue Authority (KRA) systems, making compliance difficult even under the current timelines.
While appearing before the National Assembly Finance Committee on Monday, representatives from the Kenya Private Sector Alliance and other business associations said the planned changes could place additional pressure on companies, accountants, and ordinary taxpayers.
According to the stakeholders, businesses require enough time to prepare proper financial records before filing returns.
They explained that many companies rely on audited financial statements, which often take several months to prepare, review, and approve. Audits involve collecting records, verifying transactions, and ensuring all financial information is accurate before submission.
Because of this process, business groups argued that shortening the deadline could force some taxpayers to submit estimated or incomplete returns simply to avoid penalties.
The stakeholders further warned that inaccurate filings could lead to more disputes between taxpayers and KRA. They noted that companies may later be forced to amend returns after completing their audits, creating additional work for both businesses and the tax authority.
Another issue raised before the committee was the reliability of KRA’s online systems. Business representatives said taxpayers frequently experience system downtimes, slow responses, and technical errors while trying to access services online.
They argued that unless the systems are improved, reducing the filing timeline would only increase frustration among taxpayers.
Finance Committee Chairperson Kuria Kimani acknowledged the concerns raised by stakeholders during the discussions. He assured business groups that the committee would engage KRA on the matter and push for improvements in its systems to better support taxpayers.
The debate over the proposal is expected to continue as Parliament reviews the Finance Bill 2026.
Business groups are now calling for more consultations before any changes are made to the filing deadlines, saying taxpayers need practical solutions rather than tighter timelines.
