KRA Issues New Order to Kenyans Declaring Nil Income

The Kenya Revenue Authority (KRA) has announced a crackdown on taxpayers who declare nil income despite having earned revenue.

As part of the initiative, KRA will introduce pre-filled tax returns, with known income streams already captured in the system.

Discrepancies will be flagged when KRA has supporting information, such as bank account transactions or third-party data.

KRA to Pre-Fill Returns in Crackdown on Nil Income Declarations

Speaking on Wednesday, March 25, during a Creative Engagement on Fiscal Justice with the Youth and Media, FCPA Maurice Oray, Deputy Commissioner in the Policy and Tax Division, stated that taxpayers will then be required to confirm the accuracy of the information or provide an explanation if they dispute the figures.

“What we have decided to do going forward is pre-fill the returns for you. We will tell you to just confirm that you earned this income. If you say no, we will ask you to justify why our figure differs from yours. This process will start this year,” FCPA Maurice Oray said.

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KRA to Flag Mobile and Bank Transactions 

According to Oray, the authority already holds significant financial data on taxpayers and will increasingly use this information to verify declarations.

He noted that even if someone files a nil return, KRA can track transactions, such as sales or other business activities, through its data.

Oray added that the same scrutiny applies to bank accounts, as KRA holds detailed records of financial transactions.

He, however, emphasized that taxpayers are still allowed to file nil returns, but the authority will flag any additional transactions, meaning a nil declaration may not be accepted if evidence of income exists.

“When you file nil, you probably conducted a transaction somewhere you sold something to somebody, and that data is with KRA. They have information showing that a person who declares nil income may, in fact, have been doing business,” Oray added.

“The same applies to bank accounts; KRA has details of those accounts and a lot of information. We are not stopping you from filing nil, just file nil—but we will also inform you if there are other transactions you carried out, meaning you cannot file a nil return in that case.”

Also Read: KRA Intensifies Crackdown on Tax Cheats Filing Nil Returns

This comes after the taxman stepped up its scrutiny of taxpayers who filed nil income tax returns but appear to have earned income.

The authority began sending SMS messages to individuals and companies, informing them that its systems detected income linked to their PINs. The messages notified recipients that their 2025 income tax returns have already been prepopulated on the iTax portal and are ready for review and submission.

The SMS sent to affected taxpayers read:

“Records indicate that while you filed a Nil Income Tax Return for 2024, you earned income in 2025 as evidenced by your eTIMS transmissions. Consequently, your pre-populated 2025 Income Tax Return is ready for filing. Please log in to iTax to file your return and pay any tax due.”