KRA Sets Record Straight on New April Deadline for Income Tax Returns

The Kenya Revenue Authority (KRA) has clarified changes to the filing deadline for Individual Income Tax Returns following amendments introduced under the Finance Act, 2026.

Under the new provisions, individual taxpayers will be required to file their income tax returns by April 30, replacing the previous June 30 deadline from January 1, 2027.

“The Finance Act 2026 has moved the deadline for filing Individual Income Tax Returns from the usual 30th June to 30th April,” KRA stated.

KRA Announces New April Filing Deadline

According to the Authority, the Finance Act, 2026 amended several tax laws, including the Income Tax Act, Value Added Tax Act, Excise Duty Act and Tax Procedures Act.

The amendments also affect the Miscellaneous Fees and Levies Act, Affordable Housing Act, Stamp Duty Act and Road Maintenance Levy Fund Act.

Although most of the amendments took effect on July 1, 2026, some changes have different effective dates.

KRA said a new import documentation requirement will begin on September 1, 2026, while the new return filing timelines will take effect on January 1, 2027.

Also Read: KRA Tax Amnesty 2026: Who Qualifies and What Taxpayers Need to Know

The revised income tax filing deadline will affect individual taxpayers , self-employed persons and partnerships.

Since individual taxpayers use the calendar year, their returns will be due by the last day of the fourth month after the end of the year of income, which falls on April 30.

Companies and other non-individual taxpayers will continue to file their returns by the last day of the sixth month after the end of their accounting period.

What Taxpayers Need To Do

KRA has advised taxpayers to begin preparing their tax information earlier and review the changes to determine whether they apply to their circumstances or businesses.

Individual taxpayers should confirm their employment, business and withholding tax information and carefully review their returns before submitting them.

The authority also urged taxpayers not to wait until the deadline to begin preparing or filing their returns.

Taxpayers are further encouraged to maintain proper records to support their returns and transactions and follow KRA’s official channels for further implementation guidance.

The Finance Act, 2026 has also introduced changes affecting gratuity payments, rental income earned by non-residents and card payment transaction fees.

Under the new provisions, gratuity may qualify for tax exemption where the contract of service runs for at least three continuous years, or an extension of a three-year contract, and the gratuity does not exceed 31 per cent of emoluments earned during that period.

Non-residents earning rental income from property in Kenya will also be required to register under a simplified framework and file and pay tax by the 20th of the following month, unless a resident agent is withholding the tax on their behalf.

KRA also said interchange fees and merchant service fees arising from card payment transactions will be classified as management or professional fees for withholding tax purposes.

Other Changes Affecting Businesses and Investments

The authority has highlighted additional changes affecting trusts, financial institutions and Real Estate Investment Trusts (REITs).

Also Read: KRA Clarifies Cargo Clearance Rules Amid Stakeholder Concerns

Income received by trustees, executors or administrators will be treated as their income for tax purposes. Where tax has already been paid by the trustee, executor or administrator, the beneficiary will not be taxed again on the same income.

Banks, microfinance institutions and other qualifying financial institutions carrying on money-lending businesses may also deduct bad debts in line with guidelines issued by the Commissioner.

In addition, capital gains tax relating to the transfer of property to a REIT registered by the Commissioner will be exempt.

KRA has urged individuals, employers, businesses, importers and other affected taxpayers to review the changes and update their compliance processes.

Individuals have been advised to prepare their return information early and carefully review any pre-populated information before submission.

Employers should update payroll records and filing calendars while taking note of the new conditions relating to gratuity exemptions.

Businesses have also been advised to review changes affecting VAT and withholding tax and maintain proper records to support tax claims.

Importers will be required to obtain export declarations or equivalent documents and retain relevant records for at least five years.

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A photo showing kenyans at the KRA Center filling for income tax . Photo/ Fintech Association of Kenya / FB