ADVERTISEMENT The Kenya Revenue Authority (KRA) has rolled out sweeping changes to the annual income tax filing process, unveiling a phased filing system that promises to end the notorious last-minute rush and frequent iTax crashes that have frustrated millions of taxpayers over the years.
The reforms, which will take effect during the 2026 tax filing season, were announced on Thursday, February 5, as senior government officials led by Head of Public Service Felix Koskei toured KRA offices in Nairobi — a move widely interpreted as signalling high-level backing for the reforms.
In a statement, KRA said the new approach marks a departure from the traditional “everyone files at once” model.
“Anyone who holds a KRA Personal Identification Number (PIN) is required to file tax returns annually, regardless of income status,” KRA reiterated.
“For 2026, we’re introducing a phased filing approach that treats you like an individual — not just another PIN.”
Under the new system, taxpayers will be grouped based on income complexity, allowing KRA to deliver tailored guidance instead of generic instructions that often confuse filers.
How the Phased Filing Will Work
KRA has outlined three key taxpayer categories that will anchor the 2026 filing season:
1. Employment Income Only
This group includes salaried employees whose only income in 2025 came from employment. For them, filing will be largely automatic.
Returns will be pre-populated on iTax
Taxpayers will only need to confirm details and submit
Expected to significantly cut filing time and errors
2. Employment Income Plus Other Sources
This category covers taxpayers earning salaries alongside other income streams such as rental income, professional fees, or withholding tax income.
KRA will send targeted SMS and email guidance
Instructions will be customised to the taxpayer’s income mix
Aimed at improving accuracy and compliance
3. Nil Filers and Non-Filers With Withholding Tax
These are individuals who previously filed nil returns — or failed to file altogether — despite having income subjected to withholding tax.
KRA will proactively reach out with personalized explanations
Taxpayers will be guided on obligations
Eligible individuals will be informed on how to claim tax refunds
According to the Authority, the phased model is designed to:
Reduce congestion on the iTax platform
Eliminate deadline pressure
Minimise filing errors and penalties
Improve taxpayer experience through personalized communication
Every year, KRA faces system slowdowns as millions rush to file close to the June 30 deadline — a problem the Authority says the new system will finally resolve.
KRA has urged taxpayers to update their contact details on the iTax portal to ensure they receive timely notifications.
“Be ready to receive SMS and email alerts with personalized filing instructions,” the Authority advised.
Taxpayers can verify and update their details at itax.kra.go.ke.
The reforms come as the government intensifies efforts to boost revenue collection while improving compliance through technology rather than enforcement alone. With pre-filled returns, personalized guidance, and staggered filing timelines, KRA is betting that convenience — not coercion — will drive compliance.
For millions of Kenyans, the 2026 tax season could mark the end of long queues, system crashes, and filing anxiety — if the phased approach delivers as promised.
