Mbadi Defends Proposed Tax Filing Deadline Changes in Finance Bill 2026

Treasury Cabinet Secretary John Mbadi has moved to clarify concerns surrounding proposed amendments to tax return filing timelines contained in the Finance Bill 2026, insisting that the changes are aimed at enhancing tax compliance and improving revenue administration.

Speaking amid growing public debate over the proposals, Mbadi said the government is not introducing new taxes through the measure but is instead seeking to streamline the tax filing process. He accused some critics of misrepresenting the contents of the Bill and creating confusion among Kenyans.

Under the proposed changes, taxpayers would be required to submit their annual tax returns within four months after the end of their financial year, down from the current six-month period. For most individual taxpayers, this would effectively shift the filing deadline from June 30 to April 30.

The National Treasury argues that the adjustment will allow the Kenya Revenue Authority (KRA) to process returns earlier and improve efficiency in tax administration. According to Mbadi, the move is intended to align tax compliance timelines with government planning and budgeting processes.

The Finance Bill also proposes a shorter filing period for taxpayers required to submit nil returns. If approved, such returns would have to be filed within one month after the end of the relevant year of income.

The proposals have sparked mixed reactions from taxpayers, business owners, and tax professionals. Critics argue that reducing the filing window could place additional pressure on individuals and companies, particularly those that rely on external accountants to prepare their returns.

However, the Treasury maintains that the revised timelines will encourage timely compliance and help reduce cases of late filing. Officials say the changes are part of broader efforts to strengthen revenue collection and improve the country’s fiscal management.

The Finance Bill 2026 is currently under consideration and will be subject to parliamentary debate before any of the proposed measures can become law. If lawmakers approve the amendments, taxpayers across the country will need to adjust their filing schedules to meet the new deadlines.