Filing tax returns is a legal obligation for every registered taxpayer in Kenya. Even if you didn’t earn any income during a financial year, you're still required to file a Nil Return to remain compliant with the Kenya Revenue Authority (KRA). Failure to file attracts a penalty of Ksh 2,000, which can easily be avoided by taking a few minutes online.
This guide explains what nil returns are, who should file them, and how to file through the KRA iTax portal.
What is a Nil Return?
A Nil Return is a declaration submitted to the Kenya Revenue Authority (KRA) indicating that you did not earn any income (from employment, business, rent, or any other source) during a specific tax period. It is commonly filed by:
-
Unemployed individuals
-
Students
-
Job seekers
-
KRA PIN holders without income
-
Owners of dormant businesses
What You Need Before Filing
To file your nil return, ensure you have:
-
A valid KRA PIN
-
Your iTax password
-
Access to the internet
If you have forgotten your password, you can reset it using your registered email or security question on the iTax portal.
Step-by-Step Guide: How to File Nil Returns on iTax
Step 1: Log in to the iTax Portal
Go to https://itax.kra.go.ke and log in using your KRA PIN and password.
If you haven’t registered, click on “New PIN Registration” to create an account.
Step 2: Select the Returns Option
Once logged in:
-
Click on the “Returns” tab
-
Select “File Nil Return” from the dropdown menu
Step 3: Choose the Tax Obligation
-
Under the Tax Obligation section, select Income Tax - Resident Individual
-
Click Next
Step 4: Fill in the Nil Return Form
-
Confirm your KRA PIN is displayed
-
Select the Return Period (usually from 1st January to 31st December of the previous year)
-
Click Submit
Step 5: Download the Acknowledgement Receipt
After successful submission, download and save your Acknowledgement Receipt. This is your proof of compliance and may be required for future reference.
Key Deadlines and Reminders
-
Nil returns must be filed between 1st January and 30th June of the following year
-
Late filing attracts a penalty of Ksh 2,000
-
Every individual with an active KRA PIN is required to file, even with no income
Benefits of Filing Nil Returns
-
Maintains your good tax standing
-
Prevents penalties and legal issues
-
Required for government job applications, visa processing, and business compliance
Need Help with Payroll, Tax, or HR Services?
At FaidiHR, we simplify your tax and HR processes through automation. From filing taxes to running payroll efficiently, our tools help you stay compliant and focused on what matters most — growing your business.
Contact Us Today:
Sales: +254 702 339 699
Email: sales@faidihr.com
Stay compliant. File on time. Let FaidiHR help you work smarter.