The Kenya Revenue Authority (KRA) has issued an update following the temporary suspension of nil tax returns.
KRA Deputy Commissioner in charge of Taxpayer Experience, Patience Njau, on Friday, January 23, said the authority had blocked nil return filings to allow for data validation and compliance checks, adding that the move is part of a broader effort to convert nil filers and non-filers into active taxpayers.
The suspension sparked questions and complaints from taxpayers online who were unable to file returns. In response to a query on X, KRA confirmed the temporary block on the filing of nil tax returns and confirmed when it will be restored.
“Kindly note the Nil return option is temporarily unavailable. Kindly be patient as it is scheduled to be restored on May 1st. Apologies for any inconvenience caused,” KRA replied.
Earlier, Deputy Commissioner Njau said KRA is shifting its enforcement focus in 2026 to ensure that individuals and businesses declaring nil income are properly assessed against available transaction data.
“This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers. We have systems in place to monitor other transactions, such as withholding tax, income earned, eTIMS, and customs, among others,” she said.
KRA suspends nil tax filings
She added that the temporary suspension is meant to prevent revenue loss while the authority reviews taxpayer records.
“Between now and the end of March, you cannot file nil returns for your 2025 income. Nil filing will be reopened once we have reviewed the data and confirmed that no transactions occurred during the year. This is meant to ensure that the tax burden is shared more fairly.”
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The Deputy Commissioner explained that KRA will use data from withholding taxes, employment income, eTIMS records, financial transmissions, and customs systems to generate pre-populated returns. These pre-filled returns will allow the authority to accurately assess taxpayers’ obligations before permitting nil filings.
Njau highlighted the uneven distribution of tax compliance in Kenya.
“Out of about eight million who filed, only four million actually pay taxes. So you can imagine in a country of roughly 50 million people, that is a highly skewed figure, even if we assume five million pay,” she said.
She emphasized that the self-declaration process allows taxpayers to confirm their income details, with further assessments conducted where discrepancies are identified.
How to file nil returns
Taxpayers can submit nil returns through eCitizen or the iTax portal:
eCitizen:
- Log in and select KRA services.
- Sign in using your KRA PIN.
- Select “File Returns” and then “File Nil Returns.”
- Choose the tax obligation (Individual Income Tax) and period, confirm details, and submit.
iTax:
- Log in at iTax portal.
- Navigate to Returns → “File Nil Returns.”
- Select the obligation (Individual Income Tax) and period, submit, and download the acknowledgment receipt.
All taxpayers are required to file returns by June 30 each year.
Special table and compliance enforcement
Meanwhile, KRA has rolled out new digital enforcement measures targeting persistent non-filers and businesses engaged in fraudulent practices.
Starting January 2026, the authority introduced a “Special Table” system that restricts certain taxpayers from submitting returns until they regularize their records.
It primarily affects persistent nil filers, entities that have failed to file VAT returns for six months or more, traders who have not adopted eTIMS, and operators engaged in schemes such as claiming fictitious input tax.
“KRA is using real-time data from electronic invoices and customs records to identify non-compliant PINs,” Njau said.
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The deadline for businesses to adopt eTIMS and resolve outstanding compliance issues is March 31, 2026. Entities that fail to regularize risk deregistration or penalties.
Genuine nil filers remain legally permitted to submit returns once the validation exercise is complete and may need to provide supporting documents, such as invoices or bank statements, to reactivate their VAT accounts and obtain a Tax Compliance Certificate.
Officials said the initiative reflects a broader shift toward data-driven enforcement, aimed at distinguishing between inadvertent non-compliance and deliberate tax evasion. More than 100,000 entities are currently at risk of deregistration for VAT non-compliance, the authority said.
The authority urged all taxpayers to verify their filing status and ensure compliance well ahead of the March deadline.
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