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Every Kenyan taxpayer with a Personal Identification Number (PIN) is required by law to file annual income tax returns with the Kenya Revenue Authority (KRA). Yet every year, thousands of people miss the deadline, file incorrectly, or avoid the process altogether because they do not know how to do it.

If you are in Meru, Nkubu, or anywhere across Meru County, this guide is written specifically for you. At Mutea & Associates Certified Public Accountants, based in Nkubu, Meru County, we help taxpayers across the region file their KRA returns accurately and on time. This step-by-step guide covers the complete process for filing KRA tax returns in Kenya in 2026.

What Are KRA Tax Returns?

KRA tax returns are a formal declaration you make to the Kenya Revenue Authority each year, reporting your income for the previous year and calculating the tax you owe — or the refund due to you. They are filed through the KRA’s online portal called iTax, at itax.kra.go.ke.

Under the Income Tax Act (Cap 470), every resident individual and company with a KRA PIN is required to file an annual return, even if they had no income in the year. Failure to file attracts a penalty of Ksh 2,000 per month for individuals, up to Ksh 20,000, under the Tax Procedures Act 2015.

Who Is Required to File KRA Tax Returns?

The following categories of persons are required to file annual income tax returns in Kenya:

• Employed individuals — salaried workers whose employers deduct PAYE (Pay As You Earn)
• Self-employed individuals and freelancers — traders, consultants, contractors, and sole proprietors
• Business owners — including companies, partnerships, and limited liability partnerships
• Landlords — individuals earning rental income
• Directors of companies — even if they draw no salary
• Anyone with a KRA PIN — including those who had zero income in the year (nil returns)

If you hold a KRA PIN — which is required to open a bank account, buy a car, or register a business — you are required to file.

What You Need Before You Start

Before you log into the KRA iTax portal, gather the following:

1. Your KRA PIN — a letter starting with A, followed by 8 digits and a final letter
2. Your iTax password — reset at www.kra.go.ke if forgotten
3. P9 form — issued by your employer showing your gross pay and PAYE deducted (for employees)
4. Bank statements or business records — showing all income received during the year
5. Rental income records — total rent collected in the year (for landlords)
6. Withholding tax certificates — if tax was deducted at source by clients or banks
7. Previous year’s tax return — useful for reference, especially if you had losses carried forward

If you are unsure what records apply to your situation, contact Mutea & Associates CPA for a consultation.

Step-by-Step Guide: How to File KRA Tax Returns in Kenya 2026

Step 1 — Log In to the KRA iTax Portal

Go to itax.kra.go.ke, enter your KRA PIN and password, solve the security question, and click Login. Use Google Chrome or Mozilla Firefox for the best experience.

Step 2 — Navigate to the Returns Section

Hover over the Returns menu at the top of the page, click File Return, and select the Tax Obligation that applies to you: Income Tax Resident Individual, Income Tax Resident Company, or Income Tax Rental Income (MRI) for landlords.

Step 3 — Download the Returns Form

Select the Return Period — for the 2026 filing deadline you are filing for January 2025 to December 2025. Click Download to get the Excel-based return form. Enable macros when prompted. Do not attempt to edit the form in Google Sheets — it must be opened in Microsoft Excel with macros enabled.

Step 4 — Fill In the Returns Form

The sections you need to complete depend on your income type:

• Employees (PAYE): Enter figures from your P9 form — basic salary, benefits, and PAYE deducted. Use the cumulative full-year figures, not monthly figures.
• Self-employed and business owners: Enter total gross income and deductible business expenses. The form calculates taxable profit automatically.
• Landlords: Enter total gross rent received in 2025. A flat 7.5% rate applies under the Monthly Rental Income (MRI) scheme.

Step 5 — Validate the Form

Click the Validate button within the Excel form. Correct any errors highlighted in red. When validation passes, click Generate to create a .zip file — this is what you will upload to KRA.

Step 6 — Upload the Return to iTax

Return to the KRA iTax portal. Navigate to Returns > File Return, click Browse, select the .zip file, and click Submit.

Step 7 — Make Payment (if Tax Is Due)

If your return shows tax payable, go to Payments > Payment Registration, select the tax type and period, and generate a payment slip (E-Slip). Pay via M-Pesa Paybill 572572 (account = your KRA PIN), bank transfer, or online banking.

Step 8 — Download Your Acknowledgement Receipt

After successful submission, download and save the Acknowledgement Receipt — it is your proof of filing. Check your registered email for a confirmation message from KRA.

KRA Tax Returns Deadline 2026

June 30, 2026 The deadline for filing individual income tax returns is 30th June 2026, covering income earned from 1st January 2025 to 31st December 2025. Do not wait until June 30 — the KRA iTax portal experiences severe congestion in the final days. File by 15th June 2026 at the latest.

Penalties for Late Filing

Taxpayer Type	Penalty for Late Filing
Individual	Ksh 2,000 per month, up to a maximum of Ksh 20,000
Company	5% of tax due or Ksh 20,000, whichever is higher

In addition, any unpaid tax carries a 5% late payment penalty and interest of 1% per month, compounding monthly.

Common Mistakes When Filing KRA Returns

• Using wrong figures from the P9 form — always use the cumulative full-year totals, not monthly figures
• Forgetting to include all income sources — bank interest, rental income and business income must all be declared
• Not enabling macros in Excel — the return form will not work without macros enabled
• Uploading the wrong file — always upload the .zip file, not the Excel file itself
• Using a wrong PIN — double-check before submission; corrections require an amendment process
• Missing the deadline — penalties apply from the first day after June 30, with no grace period

Frequently Asked Questions

Who needs to file KRA tax returns in Kenya?

Every person or company with a KRA PIN is required to file annual income tax returns — including employees, self-employed individuals, business owners, landlords, and directors. Even those with no income must file nil returns.

When is the KRA tax returns deadline in 2026?

The deadline for individual income tax returns covering the year 2025 is 30th June 2026. Company returns with a December year-end are also due on 30th June 2026.

What is the penalty for not filing KRA returns?

For individuals, the penalty is Ksh 2,000 per month, up to a maximum of Ksh 20,000. For companies, it is 5% of tax due or Ksh 20,000, whichever is higher. Interest of 1% per month also applies on any unpaid tax.

What is an iTax nil return?

A nil return is filed when you have a KRA PIN but had no taxable income in the year. It confirms to KRA that you were not required to pay tax. It is filed through the same iTax process with all income fields at zero.

Where can I file KRA returns in Meru County?

You can file online at itax.kra.go.ke from anywhere. You can also engage a local CPA firm such as Mutea & Associates CPA in Nkubu, Meru County to file on your behalf.

External Resources

Kenya Revenue Authority — Official Website

Income Tax Act Cap 470

Tax Procedures Act 2015