Kenya Revenue Authority has reinstated the Nil income tax return option on iTax for 2025 returns filed after 31 March 2026, following the addition of new prefill and validation checks. The change targets cases where third‑party data (withholding tax certificates, eTIMS invoices, import records) show activity despite Nil filings; taxpayers should verify PIN details and reconcile records as KRA’s Income & Expenditure Verification begins 1 January 2026.
Kenya Revenue Authority (KRA) has restored the ability to file a Nil income tax return on iTax after embedding new validation checks that will underpin the 2025 filing cycle (January–December 2025). The change affects how KRA detects and reviews mismatches between declared income and third‑party data.
Quick summary
- Nil return filing option reinstated for 2025 returns filed after 31 March 2026.
- Filing for 2024 and earlier tax years and monthly taxes (PAYE, excise, MRI, TOT) continues as before.
- Enhanced validations and prefilled data will use eTIMS invoices, withholding tax certificates, import records and other third‑party sources.
- KRA is focusing on cases where withholding tax activity or third‑party records exist but taxpayers declare “nil.”
- Income & Expenditure Verification program escalates from 1 January 2026 — confirm PIN and contact details on iTax now.
Why this matters
KRA’s data-led approach reduces reliance on self-declaration and increases detection of under-reported income. Withholding tax entries are treated as indicators of taxable receipts (withholding = advance payment), and mismatches can trigger reviews covering 2025 and earlier years.
Who is most affected
- Individuals and small businesses with low/zero declared income but observable cashflows via third‑party data.
- Taxpayers with withholding tax certificates or supplier invoices linked to their PIN.
- Businesses or individuals who rely on manual recordkeeping and have not updated iTax PIN details.
Practical actions (checklist)
- Verify and update your PIN, contact details and registered business information on iTax.
- Reconcile withholding tax certificates with your books and ensure they are reflected in returns.
- Cross-check supplier eTIMS invoices and import records that may be linked to your PIN.
- If you must file Nil, keep documentary evidence (bank statements, invoices, contracts) to support the position.
- Prepare for potential queries: maintain clear records for 2023–2025 at minimum.
Risks and likely outcomes
- Ignoring income shown on prefilled returns may expand KRA reviews into prior years.
- Discrepancies between third‑party data and declared returns are likely to trigger automated flags and manual audits.
- Taxpayers proactively reconciling third‑party records can reduce review frequency and scope.
FAQs (short)
- Q: Can I still file Nil for 2024?
A: Yes — the reinstatement applies to 2025 returns filed after 31 March 2026; normal filing for 2024 and earlier continues.
- Q: Does withholding tax mean I owe more tax?
A: Withholding tax is an advance payment; it signals that income was paid and may require reconciliation in your return.
- Q: What if prefilled data is wrong?
A: Correct iTax records, gather supporting documents, and submit explanations when filing or respond to KRA queries.
Bottom line
KRA’s restored Nil option comes with stronger validation and prefilled data. Proactive record reconciliation and ensuring accurate iTax details will minimise the risk of audits and retrospective reviews. Start verifying PIN and reconciling third‑party records now to avoid surprises when the 2025 filing window opens.
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