KRA Suspends Nil Tax Returns to Convert Nil Filers into Active Taxpayers

The Kenya Revenue Authority (KRA) has temporarily stopped taxpayers from submitting nil tax returns as part of a broader strategy to ensure more Kenyans become active taxpayers.

The suspension, which will run until the end of March, was announced on Friday by Deputy Commissioner Patience Njau during a media briefing. According to KRA, the decision is aimed at identifying individuals who file nil returns despite earning taxable income, as well as those who fail to file altogether.

Njau explained that the authority is using the period to cross-check taxpayer information using multiple data sources to improve compliance. As a result, taxpayers will not be able to submit their 2025 income tax returns during the suspension period, which runs until March 30.

She noted that KRA will be closely analysing records such as income tax declarations, withholding tax data, eTIMS transactions, and customs import information to detect income that may not have been declared.

“This year, our approach is different. We are focused on converting nil filers, non-filers, and zero payers into active, compliant taxpayers,” Njau said. “Our systems allow us to monitor various transactions, and this helps us validate whether a taxpayer truly qualifies to file nil returns.”

The move follows growing concern that some Kenyans deliberately use nil filings to avoid paying taxes, despite earning income from sources such as business activities, rentals, or trade.

KRA also stated that the measure is intended to distribute the tax burden more fairly. Historically, the authority has relied heavily on monthly PAYE contributors, while many other income earners remain outside the tax net.

According to KRA data, Kenya has about 22 million registered PIN holders, but only 8 million actively pay taxes. Of these, just 4 million consistently comply, significantly limiting the government’s revenue potential.

From January, KRA will also begin validating all income and expenses declared in tax returns against its internal databases. These include TIMS and eTIMS invoices, withholding tax records, and customs data, ensuring that declarations match actual transactions.

In a bid to make compliance easier, the authority has introduced an Automated Payment Plan that allows taxpayers with outstanding tax liabilities to pay through structured instalments. The plan covers taxes, penalties, and accrued interest.

Additionally, KRA has expanded digital access to its services. Kenyans can now file tax returns through the official KRA WhatsApp chatbot, eliminating the need to visit physical offices.

KRA Commissioner General Humphrey Wattanga confirmed that the chatbot provides access to 15 services, including tax filing, and is available around the clock. Taxpayers can access the service by saving the official KRA WhatsApp number +254 711 099 999 and sending “Hi” or “Menu” to start.