KRA Reactivates ‘Nil Returns’ on iTax After System Validation
The Kenya Revenue Authority (KRA) has reinstated the ‘Nil Returns’ filing option on its iTax platform after completing a system validation exercise, easing concerns among taxpayers ahead of the annual tax filing season that culminates in June.
The reinstatement comes barely two weeks after the tax authority suspended the option as part of a broader strategy to widen the tax base by converting nil filers and non-filers into active taxpayers. The suspension had triggered uncertainty among individuals who do not earn taxable income but are required by law to file annual returns.
A spot check on the iTax portal on Monday, February 9, confirmed that the ‘Nil Returns’ option was once again active. In a statement, KRA said the move followed the successful embedding of additional validation measures within its systems.
“The Nil Filing return option has been reinstated after the necessary system validations have been embedded for the 2025 returns to be filed after March 31, 2026,” the authority said.
KRA clarified that taxpayers eligible for nil returns will be required to use the reinstated option to file their income tax returns for the January to December 2025 period after March 31. The authority further assured taxpayers that other filing obligations had not been affected by the earlier suspension.
“Filing for 2024 income tax returns and prior periods, and other monthly obligations like PAYE, excise duty, monthly rental income and turnover tax can proceed as before,” KRA added.
The temporary suspension of nil returns was part of an intensified compliance drive aimed at addressing concerns that a significant number of Kenyans continue to declare zero income despite earning taxable revenue. During the suspension period, KRA undertook cross-checks on multiple data streams, including income tax records, withholding tax, electronic tax invoices (eTIMS) and customs transactions, to identify individuals operating outside the tax net.
Speaking in an interview in late January, Deputy Commissioner for Domestic Taxes Patience Njau defended the move, saying it was designed to promote fairness in tax administration and ensure that all eligible taxpayers contribute their share.
“This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers,” Njau said.
She revealed that although approximately 22 million individuals are registered with KRA Personal Identification Numbers (PINs), only about eight million actively pay taxes. Of those, just four million consistently meet their tax obligations, a gap she said significantly constrains government revenue collection.
“We have systems in place to monitor other transactions such as withholding tax, income earned, eTIMS and customs, among others,” Njau noted, adding that the validation exercise was meant to reduce revenue leakages and improve compliance.
“To mitigate the risk of missing out on that section, at that time we would not allow filing of nil returns until the validation was complete,” she said.
Tax experts say the reinstatement of the option restores certainty for taxpayers while signalling KRA’s continued shift towards data-driven enforcement. With the filing deadline still months away, the authority is expected to intensify taxpayer education and enforcement efforts to ensure compliance ahead of the June deadline.
As Kenyans prepare for the next filing cycle, KRA has urged taxpayers to review their income sources carefully and seek clarification where necessary to avoid penalties arising from inaccurate declarations.
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KRA Reactivates ‘Nil Returns’ on iTax After System Validation
