Reminder For Kenyan Resident Individuals
3rd March 2026
Introduction
As the financial year approaches, Kenyan resident individuals must prepare for annual tax filing with the Kenya Revenue Authority (KRA). Under the self-assessment system, you declare your income accurately, calculate tax payable (including Pay As You Earn – PAYE for employment), submit your Individual Income Tax Return via iTax, and pay any balance.
Your filed return serves as your assessment, so thorough preparation reduces errors, penalties, and audits. Proper planning—especially maximising reliefs and deductions—can lower your taxable income significantly.
How to Prepare for Your Annual Tax Filing
- Collate Supporting Documents in Advance. Gather receipts, invoices, P9 forms (from employers), bank statements, contribution certificates (e.g., NSSF, pension, SHIF), mortgage interest certificates, and insurance premium proofs. Retain these for 7 years as KRA may request them during audits. Missing documents can lead to disallowed claims and additional assessments.
- Maximise Eligible Personal Tax Reliefs and Deductions. Reliefs and deductions reduce your taxable income or tax payable. Review KRA guidelines or consult professionals to claim all eligible ones. Key ones for 2025 include:
- Personal Relief: KSh 28,800 per annum (KSh 2,400 monthly) for all resident individuals.
- Insurance Relief: 15% of premiums paid (up to KSh 5,000 monthly relief) for life, health, or education policies.
- Mortgage Interest Deduction: Up to KSh 360,000 per annum (KSh 30,000 monthly) for owner-occupied residential homes (now includes construction costs per Finance Act 2025).
- Pension/Provident Fund Contributions: Up to KSh 360,000 per annum (KSh 30,000 monthly).
- Other Deductions: NSSF contributions, SHIF (fully deductible from 2024), and more for specific cases (e.g., disability exemption).
- Filing Your Income Tax Return: All individuals with a KRA PIN must file annually via iTax—even NIL returns if no income.
- Employed only: Use the employment income section (P9 form).
- Business/other income: Declare additional sources. Use the correct sections in iTax; errors may require amendments.
- Important Tax Filing Deadlines for Year of Income 2025 (Filing in 2026) Deadline for all individual returns: 30 June 2026. File early to avoid system congestion. Late filing penalty: Higher of 5% of tax due or KSh 2,000 (plus interest on unpaid tax). Always check the official KRA portal (www.kra.go.ke) for updates.
PAYE Tax Rates for 2025 (Monthly Bands, Effective from Finance Act 2023/2025 Updates)
| Monthly Taxable Income (KSh) | Rate (%) | Tax on Excess (KSh) |
|---|---|---|
| First 24,000 | 10% | – |
| Next 8,333 (24,001 – 32,333) | 25% | – |
| Above 32,333 | 30% | – |
| Higher bands up to 35% for very high incomes | Varies | – |
(After deductions/reliefs; personal relief applied last.)
Preparing for your 2025 income tax doesn’t have to be stressful. Organise early, claim all eligible reliefs, file accurately via iTax, and meet deadlines to stay compliant and optimise savings.
Personal Tax Reliefs & Deductions Summary
Maximising these can significantly reduce your tax—talk to Pedo & Associates for personalised guidance!
Talk to Us Today
Our tax team at Pedo & Associates CPAs is ready to assist with filing, relief optimisation, audits, and advisory—especially integrating sustainability/ESG elements into your financial planning.
Contact Us
Reach out for expert support tailored to your needs. Let’s make tax season seamless and valuable for you!
Leave a Reply