The Kenya Revenue Authority (KRA) has announced a temporary halt on filing nil tax returns as part of an effort to boost compliance and ensure that more registered taxpayers contribute to national revenue.
The measure is aimed at identifying inactive taxpayers and bringing them into the tax net, as authorities seek to broaden the base of individuals and businesses paying taxes.
The development was confirmed by Deputy Commissioner Patience Njau during a press briefing on Friday, where she explained that the move will allow KRA to comb through data and ensure compliance among all registered taxpayers.
Amid the announcement, there has been some uncertainty over how long the suspension will remain in effect, with concerns that taxpayers will now have a shorter window to meet the June filing deadline.
During the suspension period, KRA teams will focus on auditing other transactions, including income taxes, withholding taxes, eTIMs, and customs records, to identify those who have not been captured in the tax net.
Njau said, “This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers. We have systems in place to monitor other transactions, such as withholding tax, income earned, eTIMs, and customs, among others.”
She added, “To mitigate the risks of missing out on that section, at this time, we will not be filing nil returns until the validation is done. Between now and March 30, you cannot file your 2025 income tax return.”
The move comes amid concerns that many Kenyans, despite earning taxable income, continue to file nil returns to evade taxes.
KRA noted that the suspension is also intended to spread the tax burden more evenly, as historically, most revenue has been contributed by monthly income earners, leaving many others, such as rental income earners, outside the tax bracket.
The authority revealed that out of 22 million registered individuals with KRA PINs, only 8 million actively pay taxes, and of these, just 4 million consistently meet their tax obligations, limiting the government’s ability to maximise tax revenue.
Kenyans have also been reminded that, starting in January, KRA will validate all income and expenses declared in tax returns against its data sources, including TIMS/eTIMS invoices, withholding tax gross amounts, and customs import records.
Additionally, KRA announced the introduction of an Automated Payment Plan to help taxpayers settle outstanding liabilities more conveniently, a measure aimed at enhancing compliance and making it easier for Kenyans to meet their tax obligations.
The authority clarified that eligible taxpayers will be allowed to pay their taxes, including penalties and interest, through structured instalments.
Meanwhile, as part of efforts to ease tax filing, KRA announced on Thursday that Kenyans can file their tax returns with the help of a WhatsApp chatbot without needing to visit KRA offices.
The authority’s commissioner, General Humphrey Wattaga, confirmed that the WhatsApp chatbot offers 15 KRA services, including tax filing, that can be accessed 24/7. Kenyans can access the authority’s WhatsApp chatbot by saving the official KRA number +254 711099999 and then initiating a chat on WhatsApp by sending either “Hi” or “Menu” to the number.
The Times Tower houses the KRA offices in Nairobi.