Embakasi East Member of Parliament Babu Owino has expressed strong opposition to a proposal contained in the Finance Bill 2026 that seeks to reduce the period within which taxpayers can file their tax returns from six months to four months.
Speaking during a press briefing on Wednesday, June 17, 2026, Owino warned that the proposed amendment could create confusion among taxpayers and place additional pressure on the Kenya Revenue Authority (KRA) systems, which have previously struggled during peak filing periods.
The proposal forms part of broader tax administration reforms contained in the Finance Bill 2026 and would require taxpayers to submit their returns within four months instead of the current six-month timeline.
According to Owino, the government has failed to consider the practical challenges that taxpayers and the KRA have faced under the existing framework.
“You are being expected to be filing tax returns, and the duration that was given is six months. This current Finance Bill proposes that the duration be reduced from six months to a period of four months,” Owino said.
The legislator cited the technical challenges experienced during the previous tax filing season, noting that the KRA system crashed despite taxpayers having a six-month window to comply.
“You remember last year, on 30th June, the system crashed when it was at six months. The system crashed, and the Commissioner had to be forced to make an extension of a further seven days,” he stated.
Owino questioned how the tax authority would manage increased pressure on its digital infrastructure if the filing period is shortened by two months.
“So if last year the system crashed and the duration that we needed was six months, now that they are proposing a duration of four months, what will happen?” he posed.
The MP argued that the proposal risks creating unnecessary uncertainty for taxpayers who require sufficient time to compile financial records and submit accurate returns.
“This is bringing confusion, and service is not being rendered to Kenyans, services that they deserve, and this must be addressed,” he said.
Owino further revealed that the proposed amendment is among the reasons he intends to vote against the Finance Bill 2026, which has generated heated debate in Parliament over several tax measures.
“Another reason why I will vote no,” he declared.
The lawmaker broadened his criticism of the bill, claiming that many of its provisions do not adequately reflect the interests of ordinary Kenyans.
“Generally, I know that this system does not have the interest of Kenyans at heart, and therefore we need change,” he added.
The proposal to shorten the tax return filing period is expected to attract further scrutiny from lawmakers, businesses, tax professionals, and individual taxpayers, many of whom have previously called for improvements to KRA's digital systems before the introduction of stricter compliance requirements.
As debate on the Finance Bill 2026 continues, the provision is likely to remain one of several contentious issues lawmakers will consider before making a final decision on the legislation.
