How To File Nil Returns In Kenya

Are you a Kenyan individual not earning an income?

You’re still required to file your KRA tax return every year. Even if you have no income to declare, Kenya Revenue Authority (KRA) expects you to submit what’s called a Nil Return.

And trust me, skipping it isn’t worth the headache. The KRA automatically slaps a KSh 2,000 penalty for individual late filings—even if you had zero earnings.

So, let’s break down how to file your nil returns, step-by-step the right way, and keep your tax record squeaky clean.

What is a Nil Return?

A Nil Return is what you file when you’ve had no income to declare over a tax year. This often applies to:

• Students

• Unemployed individuals

• Early-stage freelancers

• PAYE employees on leave or sabbatical without income

I usually tell clients: If KRA has your PIN in their system, you're in the tax loop, whether or not you have earnings.

Know if You Actually Need to File a Nil Return

This part’s easy. If your KRA PIN is active, and:

• You didn’t earn any income from employment, business, rent, farming, or investment **in the tax year**

• You are not registered for VAT or Turnover Tax (TOT)

Then yes, you need to go ahead and file a nil return.

If you're unsure, just ask your tax advisor or reach out to us, we’ll get to the bottom of it.

What You Need Before You Begin

No complicated paperwork here. But you do need:

• Your KRA PIN number

• Your iTax portal password

• Access to a phone or laptop with internet

How to File Nil Returns Online

Let’s get straight into it. Here’s how to file nil returns for the year:

1. Login to the iTax portal - https://itax.kra.go.ke

2. Enter your KRA PIN - click Continue, then enter your password and solve the security math question

3. On the iTax dashboard, go to 'Returns' > 'File Return'

4. Select 'Income Tax - Resident Individual' and click Next

5. In the return form, for the question `Do you have employment income?`, select No

6. The iTax portal system will generate a simple pre-filled return form. Confirm the year you're filing (e.g., 2025) and click Submit

7. Download the acknowledgment receipt, it serves as your proof.

You’re done. The whole thing takes less than 5 minutes. If you're still facing challenges with filing your nil returns you can reach out to one of our expert team members and they'll be able to guide you.

There are things that you'll need to note if you file your nil returns in the future.

File Before the Deadline

The deadline to file your annual returns is June 30th of every year. For example, the 2025 return must be filed by June 30, 2026.

Miss this, and KRA hits you with a KSh 2,000 penalty, even if your income was zero. And yes, it accumulates fast across multiple years.

Set a calendar reminder; I do this for all my retainer clients.

Common Mistakes to Avoid

• Thinking you’re exempt because you didn’t make money

• Filing late. KRA doesn’t forgive due to ignorance

• Filing manually at a cyber without keeping your acknowledgment receipt

I’ve seen folks try to clean up years of non-filing—and it’s not pretty.

Still Not Sure What to File? Here’s What to Do

If you had any income, even from side gigs or passive income, a Nil Return may not be valid. In those cases, you need to file a full income tax return. This includes:

• Salaried employees with side hustle income

• Freelancers with local or foreign clients

• Landlords with rental income

Best way to know for sure? Talk to one of our tax professionals. We offer free assessments to guide you to the correct filing pathway.

Final Word: How To Keep a Clean Tax Record

Even if you’re not earning, filing your nil return shows KRA that you’re in good standing. It makes your life 10x easier when you:

• Apply for government jobs

• Need a Tax Compliance Certificate

• Want to unlock loan facilities

Need Help Filing or Avoiding Penalties?

Whether you’re a student, PAYE employee on leave, or just sorting out older returns, we’re happy to help.

At Tax Room Kenya, we’ll handle the full return filing for you, including any past years that need fixing.

Book a one-on-one filing session or let us do it for you. It’s quick, easy and penalty-proof.

You’ll thank yourself next tax season.