How to File KRA Nil Returns for 2025: Process and Guidelines

The Kenya Revenue Authority (KRA) has reinstated the option to file Nil Returns for the 2025 income tax cycle after a temporary suspension that left many taxpayers in limbo. This feature is crucial for individuals with no taxable income during the year who are still required by law to submit their returns. The reinstatement of Nil Returns comes as part of KRA’s ongoing efforts to strengthen tax compliance and prevent revenue leakage through a more robust data validation process.

Previously, in January 2026, KRA temporarily blocked Nil Return filings as part of a data verification process aimed at improving compliance monitoring. During this time, many individuals were unable to file their returns, creating confusion among taxpayers. However, the KRA has now completed its validation checks, making the filing process available once again for the January-December 2025 tax period.

For individuals who did not have any taxable income, such as employment, business, or rental income, this reinstatement offers a chance to meet their statutory filing obligations before the deadline of June 30, 2026. Filing Nil Returns is mandatory even if no tax is payable, and failure to do so can attract penalties of up to Ksh 2,000.

What Are Nil Returns?

Nil Returns are filed by taxpayers who had no taxable income during the year, including employment, business, rental, or any other earnings that would be subject to tax. This filing is still mandatory, even if no taxes are due. The main purpose of filing Nil Returns is to maintain transparency in tax records and ensure that the KRA has up-to-date information about an individual’s tax status.

Although it might seem like an unnecessary step for those without income, filing Nil Returns is a statutory requirement, and not doing so can result in penalties or complications with future filings. KRA has made it clear that all taxpayers must submit their returns before the set deadline.

How to File KRA Nil Returns

Filing KRA Nil Returns is a straightforward process, especially with the option to file through multiple platforms such as iTax, eCitizen, and the M-service app. Here’s a step-by-step guide on how to file your Nil Returns for the 2025 tax year.

1. Filing via iTax Portal

To file Nil Returns through the iTax system, follow these steps:

1. Log into the iTax Portal: Visit the official iTax portal and log in using your KRA PIN and password.
2. Navigate to the ‘Returns’ Section: Once logged in, go to the Returns tab and select the option to file Nil returns or file a new return.
3. Select the Tax Obligation: From the options presented, choose Income Tax and select Resident Individual. This will automatically display the return period for the January 1 – December 31, 2025 tax year.
4. Confirm No Income: The system will prompt you to confirm that you have no taxable income to report for the given period. Once confirmed, you can proceed.
5. Submit the Return: After verifying the details, submit the return. The system will generate an e-Return Acknowledgement Receipt, which you should download and save as proof of your filing.

2. Filing via M-service App

Filing Nil Returns through the KRA M-service app is also a quick and convenient option for taxpayers:

1. Open the KRA M-service App: Ensure you have the KRA M-service app installed on your mobile device. Log in using your KRA PIN and credentials.
2. Select Nil Return Filing Option: On the app’s dashboard, navigate to the Returns section and select Nil Returns.
3. Confirm Details: Similar to the iTax process, you will be asked to confirm that you have no income to report.
4. Complete Submission: After confirming, submit your return. A confirmation message and an Acknowledgement Receipt will be generated, which can be saved or printed for your records.

3. Filing via eCitizen

For those who prefer to use eCitizen, the process is equally simple:

1. Log into eCitizen: Visit the eCitizen portal and log in to your account. If you don’t have an account, you’ll need to create one.
2. Navigate to KRA Services: Once logged in, search for KRA services and follow the prompts to access the iTax interface.
3. File Nil Return: In the Returns section, select the Nil Return option, and confirm your KRA PIN and the tax period.
4. Submit: After reviewing and confirming the details, submit the return. A receipt will be generated, which you should download and store.

Filing Deadline and Penalties

All Nil Returns for the 2025 tax year must be filed by June 30, 2026, to avoid penalties. Failure to file on time will result in a statutory penalty of Ksh 2,000. The penalty is imposed to encourage timely compliance and ensure accurate tax reporting for all taxpayers, even those who have no income to declare.

It is important to note that the KRA has instituted enhanced compliance monitoring measures. Nil Returns will now undergo automated validation against various financial data sources, such as withholding tax records, eTIMS data, and customs financial activity. This added layer of scrutiny aims to ensure that only eligible individuals file Nil Returns and that the system is not abused by those who might otherwise be avoiding tax obligations.

Key Considerations When Filing Nil Returns

• Accuracy is Key: Even though you may have no taxable income, it is essential to ensure that all information provided during the filing process is accurate. This includes confirming your KRA PIN, the correct return period, and your filing status.
• Automated Validation: KRA will now cross-check Nil Returns against a variety of financial records. As such, it’s crucial to ensure that the return is filed correctly to avoid any discrepancies with the KRA system.
• Non-Compliance Risks: Failure to submit your Nil Return could result in a delay in future filings or difficulty obtaining services from KRA. It’s also important to file Nil Returns each year to avoid complications with your tax status.

Conclusion

Filing KRA Nil Returns for the 2025 tax period is a simple yet essential step for all individuals who did not have taxable income during the year. Whether through the iTax portal, the M-service app, or eCitizen, Safaricom has made the filing process more accessible and straightforward than ever before. However, with enhanced compliance checks in place, taxpayers must ensure that their filings are accurate to avoid penalties and complications.

By filing on time and in accordance with KRA’s guidelines, you will not only avoid penalties but also stay in good standing with the tax authority. Remember, Nil Returns are mandatory, and the deadline for submission is June 30, 2026.