KRA Temporarily Suspends Nil Tax Filings to Boost Compliance
The Kenya Revenue Authority (KRA) has temporarily suspended the filing of nil income tax returns until the end of March in a move aimed at tightening compliance and expanding the country’s tax base. The decision, which takes immediate effect, is part of a broader strategy to convert nil filers and non-filers into active taxpayers.
The development was confirmed on Friday by Deputy Commissioner for Domestic Taxes, Patience Njau, during a press briefing in Nairobi. Njau said the suspension will give the authority time to validate taxpayer data and identify individuals who may be earning taxable income but continue to declare zero earnings.
“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. “We have systems in place to monitor other transactions, such as withholding tax, income earned, eTIMS, and customs, among others.”
Under the new directive, taxpayers will not be able to submit nil returns until March 30, raising questions among some Kenyans about whether the move could shorten the window for meeting the annual June filing deadline. KRA, however, clarified that the measure is temporary and is intended to enhance accuracy rather than penalise compliant taxpayers.
“To mitigate the risks of missing out on that section, at this time, we will not be filing nil returns until the validation is done,” Njau explained. “Between now and March 30, you cannot file your 2025 income tax return.”
During the suspension period, KRA teams will intensify audits across multiple data streams, including income tax records, withholding tax declarations, electronic tax invoices under eTIMS, and customs import data. The authority says the integrated systems will allow it to cross-check declarations and flag inconsistencies.
KRA has previously raised concerns that a significant number of registered taxpayers continue to misuse the nil filing option to avoid paying taxes, despite earning income from employment, business, or rental properties. The authority argues that this practice has placed a disproportionate tax burden on a small segment of compliant taxpayers, particularly salaried employees whose taxes are deducted at source.
According to KRA data, Kenya has approximately 22 million registered individuals with KRA Personal Identification Numbers (PINs). However, only about 8 million are active taxpayers, and just 4 million consistently meet their tax obligations. Officials say this gap has limited the government’s ability to maximise domestic revenue collection.
In addition to the suspension, KRA announced that beginning this year, all income and expenses declared in tax returns will be automatically validated against its internal databases. These include TIMS and eTIMS invoices, withholding tax records, and customs documentation, a move expected to significantly reduce false declarations.
To support taxpayers with outstanding liabilities, the authority also unveiled an Automated Payment Plan that will allow eligible individuals and businesses to settle taxes, penalties, and interest through structured instalments.
“The automated payment plan is designed to make compliance easier and more flexible, especially for taxpayers who may not be able to pay their obligations in a lump sum,” Njau said.
Meanwhile, KRA has continued to roll out digital solutions to simplify access to its services. On Thursday, Commissioner General Humphrey Wattanga confirmed that taxpayers can now file returns and access other services through KRA’s official WhatsApp chatbot.
“The chatbot currently offers 15 services, including tax filing, and is available 24 hours a day, seven days a week,” Wattanga said.
Taxpayers can access the service by saving the official KRA WhatsApp number, +254 711 099 999, and initiating a chat by sending “Hi” or “Menu.”
As the suspension takes effect, KRA has urged taxpayers to ensure their records are accurate and up to date, warning that the authority will increasingly rely on data-driven enforcement to improve compliance and broaden the tax base.
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KRA Temporarily Suspends Nil Tax Filings to Boost Compliance
