KRA Waives iTax Penalties After September 2026 Portal Downtime

Kenya Revenue Authority has officially announced it will waive penalties and interest accrued by taxpayers who missed the September 20 statutory deadline — a direct result of intermittent outages on the iTax portal that disrupted filing and payment services for several days in September 2026.

The relief covers three tax obligations due on September 20: August VAT returns, monthly rental income tax for residential properties, and turnover tax for small businesses. KRA confirmed the waiver applies under Section 89(5A) of the Tax Procedures Act, which grants the Commissioner authority to exempt taxpayers from penalties where failure to comply resulted from circumstances beyond their control.

What the Waiver Covers

The relief is narrowly scoped. KRA will waive only system-generated penalties and interest directly linked to the verified downtime periods during September 2026. Penalties already in place before the outages, or obligations not connected to the September 20 deadline, fall outside this relief.

The three affected obligations are:

• August VAT returns — businesses registered for value added tax
• Monthly residential rental income tax — landlords filing rental returns
• Turnover tax (TOT) — small businesses with annual turnover below KSh 25 million

If you attempted to file during the outage and received error messages, preserve those screenshots — KRA may request evidence when processing penalty objections for disputed cases.

How to Confirm Your Account Is Penalty-Free

Log in to itax.kra.go.ke and review your account ledger. If the waiver has been applied, the penalty balance for the affected return period should show zero or carry a credit adjustment. Allow several business days for the system to reflect updates after KRA's official processing.

If your account still shows a penalty after the waiver window, file an objection through iTax's Dispute Resolution section. Cite Section 89(5A) of the Tax Procedures Act and attach any documentation of your filing attempts during the downtime period.

If you're unsure whether your returns are fully clear, a KRA compliance expert on Kaziiko can review your account ledger and confirm the waiver has been correctly applied — usually within hours.

Background: What Happened

The iTax portal experienced intermittent outages across September 2026, knocking out return submission, payment processing, and PIN management functions for extended periods. The disruptions were widespread enough that KRA acknowledged them publicly and invoked the statutory remedy under the Tax Procedures Act.

For small business owners and landlords who depend on iTax to stay compliant, the timing was particularly damaging — the September 20 deadline is one of the busiest on the tax calendar, coinciding with three separate filing obligations. Missing it typically triggers automatic penalties that can compound quickly.

Taxpayers who need help catching up on outstanding returns — especially those dealing with multiple periods of arrears — can hire a verified tax expert on Kaziiko to handle the filing and clear their compliance status.

Frequently Asked Questions

Will the waiver be applied automatically or do I need to apply?

KRA has indicated it will apply the relief automatically for verified downtime periods. If penalties remain on your account after several business days, file a formal objection on iTax referencing Section 89(5A) of the Tax Procedures Act.

Does this cover all my outstanding iTax penalties?

No. Only penalties and interest directly linked to the September 2026 downtime are covered — specifically those arising from the August VAT, turnover tax, and monthly residential rental income deadlines. Pre-existing arrears from earlier periods are excluded.

My penalty still hasn't been cleared. What should I do?

Wait 5–7 business days from KRA's announcement for system updates to process. If the penalty remains after that window, file a dispute on iTax with your supporting evidence. A tax specialist on Kaziiko can help you prepare and submit the objection correctly.

Is there a deadline to request the relief?

KRA has not stated a specific deadline for waiver applications. File any necessary objections promptly — once the system stabilises and the relief window closes, late requests are unlikely to be considered.