54pc more Kenyans file tax returns by June 30 deadline

TAXPAYERS QUEUE AT THE KRA NATIONAL TAX SUPPORT CENTRE AT THE RAILWAYS CLUB IN NAIROBI ON JUNE 28, 2017. PHOTO | SALATON NJAU 

What you need to know:

  • The KRA raised Sh217.75 billion in pay-as-you-earn (PAYE) tax against its target of Sh251.98 billion.
  • Kenya in 2015 raised the penalty for failure to file returns to Sh20,000 from Sh1,000.
  • The increased filling got a boost from linking the government payment system to the online tax register, dubbed the iTax, nabbing tax cheats who make millions of shillings from trading with the state.

The number of Kenyans who filed their tax return by end of June deadline increased by 54 per cent to more than 2.4 million as workers and businesses fretted the Sh20,000 fine for non-compliance.

The Kenya Revenue Authority (KRA) said the performance surpassed their target of 2 million at a time when payroll tax receipts are trailing targets. About 1.579 million Kenyans filed their return last year.

The KRA raised Sh217.75 billion in pay-as-you-earn (PAYE) tax against its target of Sh251.98 billion.

“We are happy that sustained awareness campaign in the local media has worked out. However, a few more Kenyans failed to file their tax returns. We hope to know the actual number in due course,” said Judith Njagi, Chief Manager Taxpayer Services Nairobi Region.

Kenya in 2015 raised the penalty for failure to file returns to Sh20,000 from Sh1,000. The increased filling got a boost from linking the government payment system to the online tax register, dubbed the iTax, nabbing tax cheats who make millions of shillings from trading with the state.

Kenya has been blamed for a small tax bracket that fails to capture the self-employed and those working in the informal sector. Official data show that 2.6 million Kenyans worked in the formal sector last year compared to 13.3 million in the informal sector.

“The itax was also system was also synchronised with the Integrated Financial Management Information System (IFMIS),” Ms Njagi said.

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Note: The results are not exact but very close to the actual.