Tax Guide 2026

How to File KRA Nil Returns in 2026 — Step-by-Step

Everything you need to file on iTax before the June 30 deadline, including important changes for the 2025 tax year.

Filing window: May 1 –

June 30, 2026

· Penalty: KSh 2,000

What you need to know first

Who must file?

Every person with a KRA PIN and an Income Tax Obligation must file an annual return — even if they earned no income. This includes students and unemployed individuals.

New for 2026: AI validation on nil returns

From April 1, 2026, KRA's automated AI system cross-checks nil declarations against mobile money, bank records, eTIMS invoices, customs data, and travel patterns. Only file nil returns if you genuinely had zero income.

What to prepare

Your KRA PIN number (or National ID number)

Your iTax password

Internet access — this can be done from home

Step-by-step guide

1

Log in to iTax

Go to itax.kra.go.ke/KRA-Portal/. Enter your KRA PIN or National ID, click "Continue," enter your password, solve the security arithmetic question, then click "Login."

2

Navigate to nil returns

Once logged in, click the "Returns" menu, then select "File Nil Returns" from the drop-down.

3

Select tax obligation

Choose "Income Tax – Resident Individual" as your tax obligation, then click "Next."

4

Fill in the return period

Set Return Period From as 01/01/2025 and Return Period To as 31/12/2025. Click "Submit."

5

Download your receipt

Download the e-Return Acknowledgement Receipt as proof of successful filing. Save or print it for your records.

Key warnings for 2026

The AI validation system is real

KRA cross-checks your declaration against mobile money, bank records, eTIMS invoices, customs data, and travel patterns. Mismatches are flagged instantly.

Informal and freelance income counts

Don't file nil if you have any income. Even casual earnings qualify as taxable income.

The KSh 2,000 penalty is strict

Waivers are virtually non-existent in 2026 unless you can prove a medical emergency or KRA system downtime. The fine must be cleared before you can obtain a Tax Compliance Certificate (TCC).

Students must stay compliant

Your KRA PIN is tied to your HELB application and bank accounts. Accumulated penalties can block employment — most employers require a clean TCC.

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