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KRA iTax filing walkthrough Kenya 2026: individual, employment, business, Nil return

How to file every type of KRA return on iTax in 2026, plus deadlines and late-filing penalties.

AO
by Reviewed by Michael Mwangi 11 min read Updated 26 August 2026Verified 26 Aug 2026

iTax is the one KRA portal for filing every return. If you have a KRA PIN, you have an iTax obligation, even in years when your income is zero. This guide covers the four common filings: Nil return, individual employment income, individual business or freelance income, and VAT.

Log in to iTax

  1. Go to itax.kra.go.ke.
  2. Enter your KRA PIN.
  3. Enter your password. If forgotten, use Forgot Password or dial *572# and pick Password reset.
  4. Solve the arithmetic security question.

How to file a Nil return

For students, unemployed, or dormant business owners with zero income.

  1. From the iTax menu, choose Returns then File Nil Return.
  2. Select tax obligation: Income Tax - Resident Individual.
  3. Confirm the return period (e.g. 01/01/2025 to 31/12/2025).
  4. Submit. iTax issues an acknowledgment receipt (e.g. KRA202606251234567). Save it.

Individual return with employment income (P9)

You need your P9 form from your employer, issued by end of January each year. It lists total gross, PAYE deducted, NSSF, SHIF, personal relief, and insurance relief.

  1. Download the IT1 Individual Return Excel from iTax under Returns then File Return then Income Tax - Resident Individual.
  2. Open the Excel; enable macros.
  3. Fill the identity section (PIN, name, return period).
  4. On the Section F - Employment Income sheet, key your P9 values line by line (Basic, allowances, benefits, gross, PAYE deducted).
  5. On Section M - Tax Computation, verify the return computes zero balance if PAYE was correctly deducted at source.
  6. Save, click Validate. iTax generates a compressed .zip return file.
  7. Upload the zip on iTax; confirm submission; save the acknowledgment.

Individual return with business or freelance income

For sole proprietors, freelancers, and consultants without a registered limited company.

  1. Same IT1 Excel as above.
  2. On Section E - Business Income, key gross revenue and allowable expenses (rent portion, internet, professional subscriptions, depreciation on business equipment).
  3. Section M computes tax at the graduated PAYE-equivalent bands.
  4. If you have employment plus business, both sections are filled; iTax aggregates.
  5. If tax due > 0, generate a PRN under Payments then Payment Registration and pay via M-PESA paybill 222222.

Turnover Tax (TOT) and Monthly Rental Income (MRI)

Both are simpler, iTax-native returns filed monthly (MRI) or quarterly (TOT). See the TOT vs MRI vs income tax decision guide to check which applies to you.

  1. iTax menu: Returns then File Return.
  2. Pick Turnover Tax or Monthly Rental Income.
  3. Enter gross for the period; iTax computes 3% (TOT) or 7.5% (MRI).
  4. Generate PRN, pay via 222222.

VAT filing (monthly)

For VAT-registered persons (annual turnover above KES 5 million, or voluntarily registered).

  1. Download the VAT3 Excel from iTax.
  2. Populate: taxable sales (output VAT), taxable purchases (input VAT), zero-rated, exempt.
  3. iTax computes net VAT payable (output minus input) or credit.
  4. File by the 20th of the following month; pay any net VAT via PRN and paybill 222222.

The full 2026 deadline calendar

  • PAYE: 9th of the following month.
  • Withholding Tax: 20th of the following month.
  • VAT: 20th of the following month.
  • MRI: 20th of the following month.
  • TOT: 20th of the month following each quarter end (Apr, Jul, Oct, Jan).
  • Individual income tax: 30 June (for the prior calendar year).
  • Corporation tax (final return): 6 months after the accounting year end.
  • Instalment tax: 20th of the 4th, 6th, 9th, and 12th month of the year of income.

Late-filing penalties

  • Individual income tax: higher of 5% of tax due or KES 2,000 per return.
  • VAT and PAYE: higher of 5% of tax due or KES 10,000 per return.
  • TOT and MRI: KES 1,000 per return.
  • Interest: 1% per month on unpaid tax.

Sources

  1. iTax portal, itax.kra.go.ke, retrieved 26 August 2026.
  2. KRA Individual Income Tax page, kra.go.ke.
  3. Tax Procedures Act, Cap. 469B, on late-filing penalties and interest.

FAQ

When is the KRA deadline?

Individual income tax returns for the prior calendar year are due by 30 June. VAT is due by the 20th of the following month. PAYE by the 9th. TOT (Turnover Tax) is filed quarterly, due by the 20th of the month following the quarter end. MRI (Monthly Rental Income) by the 20th of the following month.

What is a Nil return and who files one?

A Nil return declares zero income. It is filed by KRA PIN holders who had no taxable income during the year: students, unemployed, dormant business owners. Filing Nil is free, takes two minutes on iTax, and prevents the KES 2,000 late filing penalty.

What penalty applies if I file late?

For individual income tax, the greater of 5% of the tax due or KES 2,000. For VAT and PAYE, 5% of tax due or KES 10,000. Interest accrues on unpaid tax at 1% per month.

Can I amend a return after filing?

Yes. iTax allows an amendment within 5 years of filing. Choose Returns then Amend Return, upload the corrected version. Any additional tax due plus interest applies.