KRA’s Bold Move: Temporary Suspension of Nil Tax Filings

KRA Sets March 31 as Date for Commencement of All Nil Tax Returns Filings

Hey Nairobi hustlers and business owners across Kenya – if you’ve logged into iTax recently and noticed the “nil return” option is greyed out or simply missing, you’re not alone, and it’s not a glitch. As of late January 2026, the Kenya Revenue Authority (KRA) has hit pause on allowing taxpayers to file nil (or zero) returns. This temporary block, set to run until the end of March 2026 (with some reports pointing to restoration around March 31 is part of a bigger, more aggressive push to widen the tax net and turn “nil filers” and non-filers into actual paying contributors.

I know – tax season already feels heavy, especially for small traders, freelancers, or those with irregular income who legitimately have nothing to declare. But let’s unpack this change personally and practically, so you can stay ahead without the stress. I’ve pulled together the key details from recent reports, including statements from KRA’s Deputy Commissioner Patience Njau, to give you the real picture.

Why Is KRA Doing This Now?

KRA isn’t just making life harder for the sake of it. The core reason is data validation and compliance crackdown. They’ve been cross-checking taxpayer declarations against third-party data—like withholding tax records from employers, banks, and payers—and spotted massive gaps.

• Over 392,000 taxpayers (individuals and businesses) have been flagged.
• These flags point to an estimated KSh 759.7 billion in potentially undeclared or under-declared taxes.
• Many “nil” or “zero” filers appear to be living lifestyles or running activities that suggest income, yet they’re reporting nothing.

Deputy Commissioner Patience Njau put it plainly during a recent briefing: “This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers.” She added that to avoid missing revenue from this group, “at this time, we will not be filing nil returns until the validation is done.”

In short, KRA is using this window to comb through integrated data sources, identify who should actually be paying, and nudge (or enforce) compliance before letting people declare “nothing” again.

Who Does This Affect, and What Can’t You Do Right Now?

This suspension primarily targets nil returns across various tax types, especially income tax returns for the 2025 period (covering January to December 2025). If you’re:

• Unemployed or have no taxable income and usually file nil.
• A business with zero activity in a period.
• Someone who’s been filing nil while possibly having unreported income.

…you currently can’t submit those nil filings through iTax. The option is temporarily unavailable.

Important notes:

• This doesn’t mean you skip filing entirely if you have taxable income – regular returns with payments are still required.
• Employed Kenyans should still file using P9 forms if applicable, as KRA has clarified that annual returns based on actual income remain mandatory.
• For those flagged in the audit, ignoring this could lead to PIN restrictions, deactivated certificates, or enforcement actions.

The suspension ties into broader efforts: Think of it as an extension of tools like the VAT Special Table we talked about before – all aimed at reducing misuse of the system and catching evasion without blanket rate hikes.

The Criticisms and Potential Pain Points

Not everyone’s cheering this move. Critics, including legal and business voices in outlets like Business Daily, argue it’s overreach:

• It could block access to Tax Compliance Certificates (TCCs), which many need for tenders, loans, or travel.
• Some call it procedurally questionable, as the Tax Procedures Act doesn’t explicitly allow suspending filing deadlines this way.
• For genuine low/no-income taxpayers (students, retirees, casual workers), it creates unnecessary hurdles during a routine process.

KRA seems aware of the pushback and frames it as short-term pain for long-term gain – restoring the option post-validation to ensure the system isn’t abused.

What Should You Do If This Affects You?

Stay proactive – don’t wait until March ends in panic. Here’s a practical game plan:

1. Check Your Status: Log into iTax and review your PIN profile. Look for any notices or flagged discrepancies.
2. Gather Evidence: If you truly have no taxable income (e.g., unemployed, no business activity), prepare supporting docs like bank statements, affidavits, or employment letters for when filing reopens.
3. Regularize If Needed: If the data validation might catch something (side gigs, rental income, etc.), come clean now. Voluntary disclosure often comes with leniency.
4. Seek Help: Visit your local Tax Service Office (TSO) or use KRA’s helplines/social channels for clarification. They offer support for compliance.
5. Monitor Updates: Keep an eye on official KRA announcements – timelines have varied slightly in reports (end of March vs. May 1), so confirm directly.

This is also a reminder: Building good tax habits pays off. Tools like eTIMS, timely filings, and accurate records make you less likely to get flagged in these sweeps.

Looking Ahead: Compliance as Your Superpower

KRA’s 2026 strategy is clear – expand the active taxpayer base dramatically (targeting millions more from the informal sector) while using data analytics to close loopholes. Suspending nil filings is just one piece of that puzzle, following on from VAT tools and other digital enforcement.

For many of us in Nairobi and beyond, it feels disruptive, but it could ultimately create a fairer system where honest players aren’t carrying the load. If you’re compliant, this might even reduce your audit risk down the line.

Got thoughts on this? Have you tried filing recently and hit the block? Share in the comments – let’s keep the conversation going and support each other through these changes. Stay informed, stay compliant, and keep pushing forward. We’ve got this! 💪🇰🇪