Filing tax returns has always been a headache for many Kenyans but the Kenya Revenue Authority (KRA) is now making it easier for salaried employees. Thanks to the integration of its internal systems, workers who only earn from employment will no longer have to go through the hassle of manually entering their income details every year.

How it Works

Instead of keying in all their salary and tax details, workers will now only need to enter their national ID number on the KRA portal. From there, the system will automatically pre-fill their annual income data, including gross pay and taxes paid.

This new filing model will cover:

• Employees whose only income is employment.
• Workers earning below Sh24,000 per month, who usually file nil returns.

It’s a big shift from the current process where taxpayers had to manually enter every income detail, with failure to comply attracting a Sh2,000 fine or even jail time.

Why the Change

KRA says this is part of its system integration strategy, which links tax data with external government datasets. The aim is to simplify compliance, reduce errors and save time.

“We want to get to a point where if you are purely an employed person or a nil filer, you don’t have to file your returns manually. We’ll prepopulate your details and you’ll just validate,” said KRA Commissioner-General Humphrey Wattanga.

Initially the rollout was delayed due to adjustments in payroll systems to account for new deductions such as the housing levy and the Social Health Insurance Fund (SHIF).

Penalties and Waivers

Currently, workers who miss the June 30 filing deadline are fined Sh2,000. However, the law allows KRA to waive penalties if delays are beyond a taxpayer’s control—such as system downtime.

For example, earlier this year KRA extended the deadline for 2024 returns by five days after its iTax system crashed due to heavy traffic. In a public notice, Wattanga assured Kenyans that penalties for late filing during this period would be waived, provided returns were submitted by July 5, 2025.

Upgrading iTax and Other Core Systems

To avoid such disruptions in future, KRA is upgrading its infrastructure. This includes:

• Upgrading old systems (some over 10 years old).
• Improving security and stability of the tax filing platforms.
• Migrating iTax to the cloud.

Wattanga says KRA is also working on the Integrated Customs Management System (iCMS) to modernise customs operations.

What this means for you

If you are an employed person, tax season will soon be less painful. No more worrying about missing details or penalties, just confirm the pre-populated information. For nil filers, compliance will be as simple as logging in and validating.

The Office of the Data Protection Commissioner (ODPC) has asked the Central Bank of Kenya (CBK) to revoke the licenses of two digital lenders for persistent breaches of data protection laws.

In a statement, the ODPC said despite previous administrative actions against these lenders, borrowers are still complaining of intrusive and aggressive practices, hence the call for stricter enforcement.

Breaches and Data Protection Laws

According to the ODPC, digital lenders are still violating data protection regulations, particularly on the use of borrowers’ personal information, including unauthorized access to phonebooks. This has continued even after the CBK introduced new regulations to curb such breaches.

The CBK’s Digital Credit Providers Regulations of 2022 prohibit digital lenders from accessing customers’ personal contacts or sharing sensitive information online, yet some lenders are still practicing what was meant to be curtailed.

What the Regulations Say:

• Debt Collection Practices: Digital lenders are not allowed to access a borrower’s phonebook or contact list to pressure family and friends into repaying loans.
• Online Shaming: The regulations also outlaw posting personal or sensitive borrower information online or on other public forums to shame defaulters.

More Complaints from Borrowers

Immaculate Kassait, the Data Commissioner, said the breaches are persistent. “We have seen a reduction in complaints, but we still have rogue digital lenders,” she said, referring to the repeat offenders.

The CBK can suspend or revoke the licenses of lenders who breach these regulations. The ODPC has written to the CBK to take action against the repeat offenders.

Digital Lenders’ Rogue Practices

A spot check in June 2025 found some digital credit providers (DCPs) had gone back to old debt collection methods. One is Chapeo Capital Limited, a CBK-licensed lender operating apps like ZKPesa and Chapeo Cash. The company was found to have sent harassing messages to individuals on borrowers’ contact lists, asking them to pressure their contacts to repay.For example, one of the messages read: “Your contact **** has an outstanding loan of Sh1,720 for 7 days despite several reminders. This is business money and payment is expected ASAP. Please urge them to pay NOW.”

Other digital lenders under the spotlight are Whitepath, Rocketpesa, Platinum Credit, Azura Credit and Mulla Pride, all of which have been accused of debt-shaming. Some of these companies have already received regulatory warnings and fines.

Support for Tougher Enforcement

The Digital Financial Services Association of Kenya (DFSAK), which represents digital lenders, is backing ODPC’s stance. The association’s chairman, Kevin Mutiso, said some licensed lenders had become complacent, thinking the CBK and data protection rules would be soft.

“There is a perception that regulation can be managed. Enforcement will be a signal that this can no longer be the case,” Mutiso said, adding that swift enforcement will restore the image of digital lending.

Current Digital Lending Landscape

As of June 2025, the CBK had licensed 27 digital lenders, but over 574 digital lenders are still awaiting approval. The CBK started regulating the digital lending sector following public outcry over exorbitant loan costs and aggressive debt collection tactics.

Digital lending has become a popular option for many Kenyans seeking quick, unsecured loans for emergencies. However, issues related to high-interest rates, harassment, and data privacy violations have raised concerns about the sector’s regulation and ethical practices.

The Higher Education Loans Board (HELB) has disbursed loans to 136,634 first time university students for the 2025/2026 academic year. This is a big push from the government to support students under the new Student-Centred Funding Model.

In a statement on August 15, 2025, Education CS Julius Ogamba announced the news, saying the government is committed to reducing the financial burden on new university students by providing both tuition and upkeep loans.

The New Funding Model: A Game Changer for Students

This year’s loan disbursement is part of the efforts to ensure higher education is accessible to all qualified students regardless of their financial background. Under the Student-Centred Funding Model, the amount of financial support a student will receive will depend on their financial need and the cost of their program.

According to the Ministry of Education, university fees per semester will range from Ksh 5,814 to Ksh 75,000 depending on a student’s financial need and the program they are in. This is part of the government’s efforts to reduce the cost of university programs and make it easier for more students to access education.

What Does This Mean for Students?

For many first time students these loans are a lifeline. The funds will cover tuition fees and upkeep, a big relief to students and their families. Students who have applied for loans can now check their upkeep loan awards via the HELB student portal on the Higher Education Financing website. They should also liaise with their respective university administration offices for specific fee payment schedules.

A More Affordable University Experience

Disbursement of these loans is a big step in ensuring no student is left behind due to financial constraints. As CS Ogamba said, this is in line with the government’s commitment to quality education and equitable access to higher learning for all students. The goal is not just to make education affordable but also sustainable and inclusive for Kenya’s long term development.

With the reduction in semester fees and these loans, students and families will feel some relief from the financial pressure of pursuing a university education.