Finance Bill 2026: John Mbadi Clarifies Proposed Changes to Tax Return Filing Deadlines
John Mbadi has clarified that under the Finance Bill 2026, nil filers could submit returns by December, salaried employees by April, while business taxpayers would continue filing by June 30.
Treasury CS John Mbadi says the proposed Finance Bill 2026 changes to tax return filing timelines are designed to reduce system congestion, improve compliance, and make the filing process more efficient. Photo/Courtesy
By Ruth Sang
Treasury Cabinet Secretary John Mbadi has sought to address concerns over proposed amendments to tax return filing timelines contained in the Finance Bill 2026, saying the changes are aimed at improving compliance and reducing pressure on the tax filing system.
Speaking during a Citizen TV X Space discussion on the Finance Bill 2026, Mbadi explained that the proposal introduces different filing deadlines for various categories of taxpayers, including nil filers, salaried employees and business owners.
According to the CS, the current arrangement, where most taxpayers are required to file within the same period, often leads to last-minute rushes that strain the system and cause technical difficulties.
“We have been operating with one filing window for everyone, and many people tend to wait until the final day to submit their returns. This creates congestion and challenges for the system, yet penalties still apply for those who fail to file on time,” Mbadi said.
He noted that under the proposed changes, individuals filing nil returns would be expected to submit them by December of the same year instead of waiting until June of the following year.
“For those with nil returns, the process is simple. If by December you have not earned any taxable income, there is no need to wait until June 30 of the next year to file. You can submit your return immediately,” he explained.
Mbadi further stated that salaried employees, whose taxes are already deducted through the Pay As You Earn (PAYE) system and reflected in their P9 forms, would have until April to file their returns.
“If a tax year ends on December 31, having the period from January to April to file returns provides adequate time for salaried employees to comply,” he said.
The Treasury CS emphasized that the filing deadline for business taxpayers would remain June 30, dismissing fears that all taxpayers would face shorter filing periods under the proposed law.
“Business taxpayers will continue to file their returns by June 30. Where there is any uncertainty in the wording of the Bill, we will ensure it is clarified so that taxpayers fully understand the requirements,” Mbadi assured.
He also dismissed claims that the Finance Bill 2026 seeks to expand the powers of the Kenya Revenue Authority, insisting that the proposed measures are focused on enhancing administrative efficiency and encouraging timely compliance rather than increasing enforcement authority.
“The intention is not to give KRA additional powers. The objective is to make tax administration more efficient and improve compliance among taxpayers,” he said.
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