The Kenya Revenue Authority (KRA) has announced significant reforms aimed at easing refund delays and improving service delivery for businesses.
According to a statement dated Thursday, December 11, 2025, the commissioner for Micro and Small Taxpayers, Mr. George Obell, stated that KRA has increased its refund allocation and businesses can now access a maximum tax refund of Ksh 40 million per month from the previous Ksh 30 million.
“He announced significant progress in refund processing following the enhancement of funding from Ksh 2.5 billion to Ksh 2.96 billion per month, effective July 2025,” read part of the statement.
Obell stated that additional system enhancements are being implemented to improve operational efficiency and elevate service standards for taxpayers across the country.
KRA Commitments to Taxpayers
KRA highlighted its dedication to continuous engagement with taxpayers.
During the inaugural joint roundtable between KRA, the Kenya Private Sector Alliance (KEPSA), and the Kenya Association of Manufacturers (KAM), the Commissioner for Micro and Small Taxpayers, Obell, announced significant progress in refund processing following the enhancement of funding from Ksh 2.5 billion to Ksh 2.96 billion per month.
He explained that the improvement has led to an increase in the maximum refund to 40 million from 30 million.
“As a result, businesses can now access a maximum refund of Ksh 40 million per month, up from the previous Ksh 30 million, marking a major step toward resolving longstanding refund challenges,” read part of the statement.
In addition, Ms. Nancy Ngetich stressed the Authority’s dedication to continuous engagement with taxpayers, confirming the KRA’s dedication to collaborating with the private sector.
Also Read: KRA Announces 4-Hour Service Downtime Affecting iTax System
The Acting Commissioner for Business Strategy, Technology & Enterprise Modernization (BSTEM), Mr. Alex Mwangi, revealed that KRA is integrating the Integrated Customs Management System (iCMS) with the iTax platform to improve the verification of imports, exports, and other inputs during refund processing.
However, the Representatives from KEPSA and KAM appreciated KRA for its consistency in facilitating structured dialogue platforms that enable a balanced approach to regulation and enhanced trade, where initiatives such as expedited cargo scanning and ongoing customs automation have improved efficiency for importers and exporters.
How KRA Refunds Taxpayers
The Authority refunds taxpayers by requiring them to file a claim online via its website.
After submitting their tax return, taxpayers select the relevant tax obligation and confirm the details.
Then, they provide their bank information and upload supporting documents.
Also Read: KRA Abolishes Key Tax Department Behind Filing of Returns, Forms 2 Units
The process involves online submission, after which the claim is assigned to an officer. A decision is communicated within 90 days.
Approved refunds are often used to offset other liabilities before any physical payment is made. If the refund payment is delayed beyond two years, interest may be applied.
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