73% of Kenyans File Tax Returns Ahead of Deadline

According to data from the Kenya Revenue Authority (KRA), almost 73% of Kenyans who were targeted by the taxman had submitted their tax returns before the June 30 deadline.

In comparison to a target of six million taxpayers, the KRA data released on Thursday reveals that more than 4.4 million taxpayers have filed returns by June 20.

According to KRA, it has been processing more than 120,000 submissions each day and anticipates that number to rise to 500,000 as the deadline draws near.

“4.41 million taxpayers have filed their returns representing a 15 percent growth compared to the same period in 2022. This includes individual and non-individual taxpayers as well as resident and non-resident taxpayers,” said the taxman Thursday.

The Tax Procedures Act of 2015 gives the KRA the authority to direct employers to withhold penalties and unpaid taxes from employees’ pay.

Individual taxpayers, including workers, are currently penalized with a fine of Sh2,000 or 5% of the annual tax due for the prior year, whichever is greater.

Companies, however, are subject to a fine of either Sh20,000 or 5% of the tax due in the year the return is intended to capture, whichever is higher.

Tax collectors have recently fallen short of collection goals due to tax evaders and a limited tax bracket that excludes the vast majority of self-employed people and people employed in the unorganized sector.

In spite of President William Ruto’s vigorous efforts to root out tax evaders and increase receipts, KRA fell short of its revenue collection targets by Sh27 billion in the three months leading up to December.

In the three months leading up to December, tax revenue from five primary streams—payroll, corporate, VAT, excise, and import duty—amounted to Sh466.46 billion, falling short of the target of Sh493.11 billion.

With a collection of Sh33.10 billion for the quarter, other revenues, comprising investments, penalties, levies, and forfeitures, fell short of their objective by Sh6.16 billion.

In the current fiscal year, which ends in June, the Treasury intends to raise tax revenue by Sh274.1 billion, or 14.29 percent, to Sh2.19 trillion while reducing borrowing.