Understanding KRA Nil Returns

Filing KRA Nil Returns is a legal obligation for any registered taxpayer in Kenya who did not earn any income during a particular financial year. This applies to students, unemployed individuals, or anyone with an active Personal Identification Number (PIN) who had zero income for the period. Failure to file, even when you have no income, attracts a penalty of KES 2,000.

Who Should File Nil Returns?

You should file Nil Returns if:

• -You are a registered taxpayer with an active KRA PIN.

• -You did not receive any form of income—salary, business profit, rental income, etc.—during the tax year.

• -You are a student, job seeker, or have ceased earning but your PIN is still active.

Step-by-Step: How to File Nil Returns on iTax

Filing Nil Returns takes less than 10 minutes if you follow these steps:

1. Visit the iTax Portal

Go to https://itax.kra.go.ke using a browser on your phone or computer.

2. Log In to Your Account

Enter your KRA PIN and password, then solve the simple arithmetic question to log in.

If you’ve forgotten your password, click on “Forgot Password” to reset it via your registered email.

3. Navigate to ‘Returns’

On the iTax homepage, hover over or click “Returns”, then select “File Nil Return.”

4. Select Tax Obligation

• -For individuals, choose: Income Tax – Resident Individual.

• -The system will automatically select the appropriate return period (usually from 1st January to 31st December of the previous year).

5. Submit the Nil Return

• -Confirm your details are correct.

• -Click “Submit” to finalize your filing.

6. Download the Acknowledgment Receipt

Once the return is submitted, you’ll get an Acknowledgment Receipt. You can download or print this for your records.

Common Mistakes to Avoid

• -Not filing at all: Even with zero income, not filing attracts penalties.

• -Filing late: KRA requires returns to be filed by June 30th each year.

• -Wrong return type: Don’t file a Nil Return if you earned any income, even if it was small or untaxed.

Penalties for Non-Compliance

Failure to file Nil Returns by the deadline will result in:

• -A KES 2,000 penalty for individuals.

• -Accumulating fines over the years if left unresolved.

• -Possible blocking of compliance certificates and access to government services.

Filing Period and Deadline

• -Filing opens on January 1st every year.

• -Returns must be submitted by June 30th.

• -You are always filing for the previous year’s income status.

Read this related article: Kenya’s 2025 Tax Returns Deadline and Penalties Explained

Final Thoughts

Filing KRA Nil Returns is not optional for registered taxpayers—even if you have no earnings. It’s a legal requirement that maintains your tax compliance status, keeps your PIN active, and helps you avoid penalties. Always mark your calendar before the June 30th deadline to stay in good standing with the Kenya Revenue Authority.