The Kenya Revenue Authority (KRA) has outlined new tax administration measures it is allowed to undertake under the Finance Act 2026, amid reports of powers to freeze bank accounts for not submitting the Housing Levy.

🇰🇪 Breaking It Down

In its latest guide, KRA said the new measures introduced with effect from July 1, 2026, give it the power to use taxpayer information to pre-populate returns and tighter enforcement of electronic tax compliance.

Under the changes, KRA may issue taxpayers with pre-populated tax returns using information already available to the authority.

"The Finance Act allows KRA to issue tax returns using information already available to it. Where you receive a pre-populated return, you will be able to review, confirm or amend the information before submitting it," KRA stated.

📌 What You Need to Know

Taxpayers who receive such returns will be required to review the information, confirm its accuracy or make amendments before submitting the returns.

However, the authority said it will receive further guidance on how this will be done and who will be affected.

The move is likely to make tax filing easier while giving KRA greater access to information that can be used in administering taxpayers' obligations.

At the same time, the Act also introduces measures affecting taxpayers who fail to comply with electronic tax requirements.

According to the taxman, when a taxpayer fails to issue an electronic invoice, file electronically or make an electronic payment, the authority will issue a notice and consider the taxpayer's explanation before applying the relevant penalty.

"Where a taxpayer fails to issue an electronic invoice, file electronically or make an electronic payment, KRA will issue a notice and consider the taxpayer's explanation before applying the relevant penalty," it added. The authority will also consider system-generated errors when determining whether penalties or interest should be waived, subject to the law.

📰 Source: Kenyans.co.ke