How to File KRA Nil Returns 2026: A Step-by-Step Guide

It's once again the time of year for all Kenyans to file their tax returns. Whether employed or not, this filing is mandatory.

This guide will focus on filing NIL returns, a category that applies to the majority of Kenyans. NIL returns are intended for unemployed Kenyans, students who possess a KRA PIN, and individuals whose taxable income is zero.

Tax returns must be filed via the KRA portal, and the submission deadline is typically June 30th annually.

Pre-requisites: What You Need Before Starting

Before you start filing, you need to have the following things.

An active KRA PIN- This is the primary requirement

No Taxable income-You must genuinely not have earned any income

Your iTax password- You need to log in to get access to the NIL returns form.

A reliable internet connection- You need to have a reliable internet connection, a laptop, or a smartphone. If you lack any of these, you visit a cyber, and you will be charged KES 50-100 for the filing

Critical Warning: Who Should NOT File KRA NIL Return 

Filing KRA NIL returns is strictly limited to individuals or entities that have absolutely no income to declare for the entire tax period. As noted previously, not everyone meets the eligibility requirements. These individuals and entities include:

The employed- Many employees mistakenly file NIL returns because they assume that since their employer has already deducted PAYE (Pay as You Earn), they have nothing left to pay. This is wrong

You have a business (Even if it made a loss)- if you had an active business and you made a loss, you should not file NIL returns; you should file a standard return and declare your revenue and expenses.

You have withholding tax certificates- Let's say you sold goods and services, and the payer withheld 5% or another percentage, a withholding tax, you should NOT file NIL returns.

You have rental Income - If you earn money from rental income, no matter how small it is, you should NOT file an income NIL return if you are registered for the Monthly Rental income (MRI) obligation or if you are declaring it annually.

Submitting false returns may trigger an investigation and result in penalties and interest. The penalty is either 25% of the tax amount involved or KES 10,000, whichever is higher.

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

Step 1

Log in to the iTax portal by entering the password and completing the security stamp(https://itax.kra.go.ke/KRA-Portal/main.htm?actionCode=showHomePageLnclick)

Step 2

Navigate to the returns menu tab and select File NIL Return

Step 3

Select Tax obligation. In this case, select 'Income Tax Residential' if that applies to you.

Step 4

Fill in the return Period. If you have been consistently filing your returns, the return period from and the return period to will automatically populate.

Step 5

Submit and Download. Once you download the receipt, open it and review it, as this confirms that your return has been filed.

Troubleshooting Common Issues

“I forgot my KRA password” - Visit iTax.kra.go.ke and enter your PIN or ID number and click on continue, click on forgot password or unlock account, do the security stamp, and submit. Once submitted, a new password will be sent to your registered email address. Click on it to reset it.

“The system is slow.”- If the system is slow, try filing your returns early or during off-peak hours, especially at midnight.

“It says I have a pending liability.”- The most common way to fix this is to pay the full outstanding amount through the iTax portal or the KRA M-services app.

Frequently Asked Questions

What is the penalty for not filing KRA NIL returns? The penalty is KES 2,000

Can university students file KRA returns? Yes, if they have a valid PIN

Can I file KRA returns after the deadline? Yes, if you pay the penalty or if KRA extends the deadline due to system glitches or heavy traffic

Conclusion

File your NIL or other returns promptly to prevent system congestion caused by last-minute submissions.

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