The Kenya Revenue Authority (KRA) has announced that taxpayers who qualify to file nil returns will be able to do so from March 31, 2026.
In a notice issued on Friday, February 20, KRA said it had temporarily suspended the nil filing option for the 2025 tax return year after discovering that many people were wrongly declaring zero income.
The Authority explained that a system review showed widespread misuse of the nil return option on the iTax platform. Some taxpayers, KRA said, filed nil returns even though they had earned income through salaries, side hustles, freelance work, rental income or business.
“Nil filing option will be available to eligible filers with effect from March 31, 2026, after the conclusion of validations,” KRA said in its statement.
The taxman made it clear that only Kenyans who genuinely did not earn any income in 2025 should file nil returns once the option is reopened.
In a direct message to taxpayers, KRA warned those who may have misused the system.
“Dear Nil Filer, we see you. You logged into iTax last year and submitted a return that said ‘I earned zero’ because you thought you had nothing to declare,” the Authority stated.
It added that anyone who earned money in 2025 — whether from employment, biashara, rent or online gigs — was not supposed to file nil returns.
KRA said filing nil despite earning income goes against tax rules and affects compliance. Taxpayers have been urged to declare their full income correctly.
Phased Filing Plan
The announcement comes shortly after KRA introduced a new phased filing system meant to reduce the usual last-minute rush.
Under the new approach, taxpayers will no longer file all at once. Instead, they will be grouped based on how complex their income is. KRA says this will make filing easier and reduce pressure on the iTax system.
Taxpayers will receive SMS and email notifications to guide them on when and how to file their returns.
With the March 31 date now set, Kenyans who qualify to file nil returns will have to wait a little longer as KRA completes its system checks.
