The Kenya Revenue Authority (KRA) has restored the nil tax return filing option after completing system validations aimed at strengthening tax compliance ahead of the 2025 income tax return cycle, which runs until June 30, 2026.
The reinstatement ends uncertainty among taxpayers who were temporarily unable to submit nil returns during the suspension period.
According to KRA’s Business Strategy, Technology and Enterprise Modernisation Department, the nil return option now applies to the January–December 2025 tax period within the iTax system, enabling eligible individuals with no taxable income to fulfil their statutory filing obligation on time.
The restoration comes as millions of taxpayers with KRA PINs rush to file returns. Failure to file attracts a statutory penalty of Ksh2,000.
Earlier, the KRA introduced a temporary block on nil return filings in January as part of compliance and data validation checks.
KRA Deputy Commissioner for Taxpayer Experience, Patience Njau, had on Friday, January 23, said the suspension was intended to allow the authority to review taxpayer records and strengthen enforcement against persistent nil filers and non-filers.
Njau indicated that the authority is shifting its 2026 enforcement strategy toward verifying nil declarations by tracing transactions, including withholding tax records, declared income streams, eTIMS data, and customs-linked financial activity.
The decision sparked widespread questions from taxpayers after many were unable to file. In response, KRA confirmed that the suspension was temporary and necessary to prevent revenue leakage while validating declarations against existing financial data.
KRA has since completed the validation phase and is now allowing eligible taxpayers to proceed with nil filings under enhanced compliance monitoring.
How to File KRA nil returns
Nil returns are filed by individuals who had no source of income — including employment, business, rental, or other taxable earnings — during the year. Filing remains mandatory even when no tax is payable.
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Nil filing is strictly for individuals who earned no taxable income during the year under review. A valid KRA PIN and login credentials are required, and all returns must be submitted by June 30, 2026, to avoid penalties.
Filing via the iTax portal and the KRA M-service app
To file through the iTax system, a taxpayer must log in to the portal. Once inside the dashboard, navigate to the Returns section and select the option to file a nil return or file a new return.
The system prompts the user to choose the applicable tax obligation—typically Income Tax—Resident Individual— and then automatically displays the return period (January 1 to December 31, 2025) for those with a consistent filing history.
Confirm you have no income to declare and submit the return. Upon successful submission, the system will generate an e-Return Acknowledgement Receipt, which should be downloaded and saved as official proof of filing.
Filing via eCitizen
Taxpayers may also file nil returns through the eCitizen platform by logging in to their account and accessing KRA services, which then redirects to the iTax interface.
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From there, proceed to the Returns section and select the nil return option, choose Income Tax – Resident Individual, and confirm their PIN and return period.
After verifying the details, submit the return and download the acknowledgement receipt generated by the system. Mobile number verification may be required in some cases before submission is completed.
Under updated compliance rules, nil returns are now subject to automated validation against multiple financial data sources to ensure accuracy and prevent misuse of the nil filing category.
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