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We have a crisis.
For the last four months. June, July, August and now September. iTax, the primary system for filing returns and collecting Kenyan taxes, has experienced downtimes of monumental proportions.
As a result, taxpayers have been unable to file returns on time, or have had to wait until the system wakes up before they can file.
This has caused immense damages to many. Accountants for example have confessed that they no longer have a life. They sleep on the iTax portal. Refreshing. All night.
Then, a taxpayer fails to file on time because iTax is down. iTax later wakes up. The taxpayer files.
Then KRA religiously airdrops a late filing penalty into the taxpayer's account and demands payment.
This has elicited holy anger against KRA.
Taxpayers are asking, why should I be penalised for failing to use a system that was not functioning?
And this is a justified question.
In my legally informed view, no taxpayer should be penalized for KRA's mistake.
The Tax Procedures Act actually provides a mechanism for dealing with penalties and interest arising from KRA's system failures.
Section 89(5A) allows CS John Mbadi, on the recommendation of KRA, to waive penalties or interest where they arose from, among other things, an error generated by an electronic tax system, a delay in updating the system or a malfunction of KRA system.
KRA has previously waived penalties after iTax downtimes prevented taxpayers from filing on time. In July 2025, KRA announced that penalties and interest arising from the affected filing period would be waived.
So here is my proposal.
- As KRA works to fix and stabilise iTax & eTIMS, it should publicly assure taxpayers that penalties arising directly from its system failures shall be waived.
Then go ahead and actually remove those penalties from taxpayers' accounts.
It would be deeply immoral for KRA to profit from its own system failures.
Is this too much to ask?
My fellow accountants, tunakutana wapi na placards ya ‘Haki Yetu’? Can @KRACare just let us know what the issue with itax is. Or we are still in denial?
Hello @KRACorporate@KRACare,
The tax amnesty legally kicked off on 1st July.
Have you started deleting the penalties, interest, and fines for taxpayers who have already cleared their principal tax?
If not, what is the implementation plan?
Taxpayers are refreshing their iTax ledgers with hope.
Does eTims work at all these days?
It is deeply frustrating that such a critical system has barely worked for over a month, yet taxpayers are still expected to comply and risk penalties for failing to issue or submit eTIMS receipts.
Meanwhile, no one is being held to account.
Yes and that's ok. If KRA said deadline was such and such a day, thet should deploy IT resources to ensure that it works perfectly everyday, including the last day. 30th June is still June
I think the questions that we are not asking loudly enough are:
If Ebola is mainly in the DRC why is America crying the loudest about it?
How are Americans getting Ebola?
What are Americans doing in DRC?