KRA Temporarily Suspends Filing of Nil Tax Returns to Boost Compliance
The Kenya Revenue Authority (KRA) has temporarily suspended the filing of nil tax returns until the end of March as part of a wider strategy to bring more people into the tax system.
The move is aimed at identifying individuals who regularly file nil returns or fail to file altogether, despite earning taxable income.
The decision was confirmed on Friday by KRA Deputy Commissioner Patience Njau during a press briefing.
She explained that the suspension will give the authority enough time to review taxpayer data and confirm whether registered individuals are genuinely earning no income or are avoiding their tax obligations.
Following the announcement, some taxpayers expressed concern about how long the suspension will last and whether it could reduce the time available to file returns before the June deadline.
However, KRA clarified that the measure is temporary and will only remain in place until the end of March.
During this suspension period, KRA officers will be analysing data from various sources to identify income that may not have been declared.
These include income tax records, withholding tax data, electronic Tax Invoice Management System (eTIMS) records, and customs import information. According to Njau, KRA now has advanced systems that allow it to track different types of financial activity across the economy.
“This year, our approach is very different,” Njau said. “We are deliberately focusing on converting nil filers, non-filers, and zero payers into active taxpayers. We are monitoring income earned, withholding tax, eTIMS transactions, customs records, and other data sources to ensure no one falls outside the tax net.”
She further explained that to avoid missing out on taxpayers who may be under-declaring income, KRA has temporarily stopped nil return filings until the validation exercise is complete. “Between now and March 30, you will not be able to file your 2025 income tax return if it is nil,” she added.
KRA noted that the move is driven by concerns that many Kenyans continue to file nil returns even though they earn taxable income. This practice has contributed to an unfair tax system where only a small group of taxpayers carries the bulk of the country’s tax burden.
The authority also revealed that tax contributions in Kenya have historically come mainly from salaried employees who pay Pay As You Earn (PAYE) every month. Meanwhile, other income earners, such as landlords and individuals in informal or business sectors, often remain outside the tax bracket or underpay their taxes.
According to KRA, out of about 22 million registered individuals with KRA PINs, only 8 million are active taxpayers. Even more concerning, only 4 million of these consistently meet their tax obligations.
This gap, KRA says, greatly limits the government’s ability to raise enough revenue to fund public services and development projects.
Kenyans have also been reminded that starting January, KRA will strictly validate all income and expenses declared in tax returns.
The declared figures will be cross-checked against KRA’s internal data, including TIMS and eTIMS invoices, withholding tax records, and customs import data. Any inconsistencies may trigger further review or audits.
In addition, KRA announced the rollout of an Automated Payment Plan designed to help taxpayers clear outstanding tax liabilities more easily.
Under this system, eligible taxpayers will be allowed to pay their taxes, including penalties and interest, through structured instalment plans. The move is intended to encourage compliance while reducing the financial pressure on taxpayers with arrears.
As part of efforts to make tax filing more convenient, KRA also announced that Kenyans can now file their tax returns using a WhatsApp chatbot, eliminating the need to physically visit KRA offices.
The authority’s Commissioner General, Humphrey Wattanga, confirmed that the chatbot provides access to 15 KRA services, including tax filing, and is available 24 hours a day.
To use the service, Kenyans are required to save the official KRA WhatsApp number, +254 711 099 999, and start a chat by sending “Hi” or “Menu.” This digital option is expected to improve access to KRA services and make it easier for taxpayers to comply with their obligations.
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