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How to file a KRA nil return on iTax in 2026

Who files a nil return, the steps, the deadlines, the penalty, and the rule changes KRA made in 2026.

DW
by Reviewed by Josephine Njeri 6 min read Updated 25 October 2026

If you have a KRA PIN and earned nothing in a year, you still file a return for that year: a nil return. It takes a few minutes on iTax or the KRA M-Service App. Miss it and KRA charges KSh 2,000 for each late year. Returns for 2025 were due by 30 June 2026; from 2027 the deadline moves to 30 April.

Who files a nil return

KRA's rule is simple: every individual with a KRA PIN files a return every year, whether they earned income or not, and if there is no income to declare, the return is a nil return. That usually means:

  • Students and unemployed people who registered a PIN but had no income.
  • People who were out of work for the whole year.
  • Business owners whose business made no sales at all that year.

Do not file nil if you had any income. A salary means an employment return using your P9. Tax withheld from your fees or contracts means a normal return: KRA says withholding tax is not a final tax for residents, apart from items such as winnings and qualifying interest. Since 1 January 2026 KRA has been checking returns against eTIMS invoices, withholding tax records and customs import data, so income it can already see will show up.

How to file a nil return on iTax, step by step

  1. Go to itax.kra.go.ke and log in with your KRA PIN and password. If you have forgotten the password, use the reset link on the login page.
  2. From the Returns menu, choose File Nil Return.
  3. Pick the tax obligation Income Tax - Resident Individual and click Next.
  4. Confirm the return period. For the 2025 year it is 01/01/2025 to 31/12/2025.
  5. Submit. iTax shows an acknowledgement receipt. Download it and keep it; it is your proof of filing.

KRA's own video walk-through is linked from its Individual Income Tax page, and KRA says you can also file a nil return on the KRA M-Service App. If you have more than one missing year, repeat the steps for each period.

The 2026 suspension and reinstatement

According to news reports, KRA suspended the nil return option on iTax in January 2026 and restored it in early February. We could not find a KRA notice on kra.go.ke about either step. The earliest report we found is Business Daily on Saturday 7 February 2026, quoting a KRA statement:

“The Nil Filing Return option has been reinstated after the necessary system validations were embedded for the 2025 returns to be filed after March 31, 2026.”

The same statement, as reported, said filing for 2024 and earlier years, and monthly obligations such as PAYE, excise, monthly rental income and turnover tax, could carry on as before. The Kenya Times reported the same on the same day. Treat these details as reported until KRA publishes a notice.

Deadlines

  • 2025 returns: due by 30 June 2026 (KRA notice of 8 June 2026). KRA said people who missed it face default assessments.
  • 2026 returns onward: from 1 January 2027, individuals file by the last day of the fourth month after the year, which is 30 April. So the 2026 nil return is due by 30 April 2027. See Finance Act 2026 for employees.
  • Some news reports say nil filers will have until 31 January. KRA's Finance Act page does not say that, so we go by 30 April.

Penalty for filing late

KRA: late filing of an individual income tax return costs 5% of the tax due or KSh 2,000, whichever is higher. A nil return has no tax due, so each late year costs KSh 2,000. Late payment of any tax due adds 5% of the tax and interest of 1% a month. If you do get a penalty, here is how to pay a KRA penalty by M-PESA.

Monthly nil returns are a different thing

Landlords on monthly rental income tax file a nil return for any month with no rent, and employers with no PAYE to declare file a nil PAYE return, per KRA. Those are separate obligations from the yearly individual return above.

Frequently asked questions

Who should file a nil return?

Anyone with a KRA PIN who earned no income in the year. KRA says every individual with a PIN must file a return every year, whether or not they earned anything. If you had a salary, freelance income or rent, file the right return for that income instead.

What is the penalty for not filing a nil return?

KRA charges an individual 5% of the tax due or KSh 2,000, whichever is higher, for filing late. On a nil return there is no tax due, so the penalty is KSh 2,000 for each year filed late.

Can I still file nil returns for past years without the penalty?

Yes, until 31 December 2026, for years up to 2025. KRA's amnesty notice says returns filed with no principal tax due (nil returns) automatically qualify for amnesty on the late filing penalty.

When is the nil return deadline?

Returns for 2025 were due by 30 June 2026. From 1 January 2027 KRA says individuals file by 30 April, so the return for 2026 is due by 30 April 2027.

Can I file a nil return if tax was withheld from my payments?

No. KRA treats withholding tax on resident payees as an advance, not a final tax, except on things like winnings and qualifying interest. Declare the income and claim the withholding certificate in a normal return.

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