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Babu Owino opposes KRA’s Finance Bill 2026 proposal to reduce tax return filing period

Babu Owino opposes KRA’s Finance Bill 2026 proposal to reduce tax return filing period
Embakasi East MP Babu Owino.PHOTO/https://www.facebook.com/babuowinongili

Embakasi East Member of Parliament (MP) Babu Owino has raised concerns over a proposal 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, warning that the move could create confusion and deny Kenyans efficient services.

Speaking on Wednesday, June 17, 2026, during a press briefing, the outspoken legislator said the proposal fails to take into account the challenges taxpayers and the Kenya Revenue Authority (KRA) system have faced in recent years.

“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 bill proposes amendments to tax administration laws by shortening the filing window for returns.

People Daily digital screengrab of a section of the Finance Bill 2026.

The proposed changes would require taxpayers to submit their returns within four months instead of the current six-month period, a move that has sparked debate among lawmakers and taxpayers.

According to Owino, reducing the filing period could worsen existing challenges experienced on the KRA online platform, especially during peak filing periods.

Which way, KRA?

“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 said.

The MP argued that if the tax filing system struggled under the current six-month timeline, shortening the period by two months could place even greater pressure on both taxpayers and government systems.

“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.

A section of KRA office.PHOTO/@KRACorporate/X
A section of KRA office. PHOTO/@KRACorporate/X

Interest of Kenyans

Owino said the proposed amendment is already creating uncertainty among Kenyans who rely on adequate time to compile and submit their tax information accurately.

“This is bringing confusion, and service is not being rendered to Kenyans, services that they deserve, and this must be addressed,” he stated.

The legislator further revealed that the proposal is among the reasons he intends to vote against the Finance Bill 2026 when it comes before Parliament.

“Another reason why I will vote no,” Owino declared.

The lawmaker also broadened his criticism of the bill, arguing that many of its provisions do not reflect the interests of ordinary citizens.

“Generally, I know that this system does not have the interest of Kenyans at heart, and therefore we need change,” he said.

The proposed reduction in the tax return filing period is expected to attract scrutiny from tax experts, businesses and individual taxpayers, many of whom have previously called for improvements to KRA’s digital infrastructure before introducing stricter compliance timelines.

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