Is it a crime not to file tax returns or keep records?
Tax Procedures Act · sources read 5 Oct 2026
Yes. Failing without good reason to file a tax return by the due date, failing to pay tax by the due date, and failing to keep the records a tax law requires are all offences. A conviction can mean a fine of up to KSh 1 million, up to 3 years in jail, or both, and more for tax fraud.
- Where
- Kenya Revenue Authority (KRA); prosecutions are heard in the criminal courts
Steps
- For the same act, KRA's Commissioner chooses either to demand an administrative penalty or to prosecute. You can't be given both.
- If you admit an offence in writing, you can ask the Commissioner to compound it: you pay a sum set by KRA, no higher than the court fine, instead of going to court.
- If you're convicted of not filing, the court will also order you to file the missing return within a set time.
Watch out
- A prosecution doesn't cancel the tax: the tax and late payment interest are still owed, and the court can order you to pay them.
- Tax fraud, like knowingly leaving income out of a return, carries much more: a fine of up to KSh 10 million or double the tax evaded, whichever is higher, or up to 10 years in jail, or both.
- Once an offence is compounded, you can't later be prosecuted or penalised for the same act, unless the Director of Public Prosecutions expressly agrees.
Who this covers
- Anyone who must file returns, pay tax or keep documents under a tax law
Official sources (1)
- Tax Procedures Act (Cap. 469B), version of 1 September 2026 new.kenyalaw.org · read 5 Oct 2026