Many Kenyans assume that if they did not earn any income in a given year, they have no obligation to KRA. This is incorrect. Having a KRA PIN creates a filing obligation regardless of your income level — even if that income was zero.
If you are among the taxpayers across Kenya, including those in Meru, Nkubu, Isiolo and Embu, who had no taxable income in 2025, you are still required to file what is called a nil return by 30th June 2026. This guide explains who needs to file a nil return, why it matters, and exactly how to do it.
What Is a KRA Nil Return?
A nil return is an annual income tax return filed on the KRA iTax portal that declares zero taxable income for the year. It confirms to the Kenya Revenue Authority that you hold a KRA PIN but had no income to declare for the period in question.
Filing a nil return is a legal requirement under the Income Tax Act (Cap 470). It is not optional, and not filing one when you have a PIN attracts the same penalties as failing to file a standard return.
Who Should File a Nil Return?
You should file a nil return if you hold a KRA PIN and any of the following applied in 2025:
- You were unemployed throughout the year and had no employment or business income
- You are a student with a KRA PIN but had no income
- You are a recent graduate who registered for a PIN to access HELB or government services but has not yet started earning
- You are a housewife or househuband with a PIN but no personal income
- You are a director of a company that had no operations or income in the year
- Your business was dormant for the entire year
- You are retired and your pension income falls below the taxable threshold
The key test is simple: if you have a KRA PIN and you have not filed a return for 2025, you need to either file a standard return or a nil return. There is no third option.
Why Filing a Nil Return Matters
Beyond avoiding penalties, there are practical reasons why maintaining your nil return filing record is important:
1. Your KRA PIN stays active
Consistently failing to file — even nil returns — can cause KRA to flag your PIN as non-compliant. This can create complications when you need your PIN for banking, contracts, or government services.
2. You can access a Tax Compliance Certificate
A Tax Compliance Certificate (TCC) is required for tenders, loans, and many business registrations. KRA will not issue a TCC if you have unfiled returns on your record — even nil returns from years when you had no income.
3. You avoid accumulating penalties
Under the Tax Procedures Act 2015, the penalty for failing to file is Ksh 2,000 per month for individuals, up to Ksh 20,000. If you have unfiled nil returns going back several years, these penalties accumulate and must be settled before your PIN is fully compliant.
4. You protect your financial history
When you start earning income in future years, having a clean filing record makes your tax position easier to manage. Gaps in filing history can trigger compliance reviews.
How to File a KRA Nil Return on iTax in 2026
Filing a nil return is simpler and faster than a standard return. Here is the step-by-step process:
Step 1: Log In to KRA iTax
Go to itax.kra.go.ke and log in with your KRA PIN and password. If you have forgotten your password, click Forgot Password and follow the reset process using your registered email.
Step 2: Navigate to File Return
From the top menu, hover over Returns and click File Return.
Step 3: Select the Tax Obligation
Select Income Tax, then Resident Individual (for most PIN holders). Select the return period: January 2025 to December 2025.
Step 4: Download the Returns Excel Form
Click Download to get the Excel form to your computer. Open it in Microsoft Excel and enable macros when prompted.
Step 5: Leave All Income Fields as Zero
This is the key step for a nil return. Open the Excel form and do not enter any figures in the income sections. All income fields should remain at zero or blank. Do not enter estimated figures if you genuinely had no income.
Step 6: Complete the Basic Identification Section
Fill in your name, KRA PIN, and any other required identification fields at the top of the form. These are mandatory even for nil returns.
Step 7: Validate, Generate and Upload
Click Validate to confirm the form is complete, then Generate to create the .zip file. Return to the iTax portal, go to Returns, then File Return, upload the .zip file, and click Submit.
Step 8: Download Your Acknowledgement Receipt
Once the submission is confirmed, download and save the Acknowledgement Receipt. This is your proof that the nil return was filed. Keep it for your records.
Nil return help in Meru County
Mutea and Associates CPA in Nkubu files nil returns for clients across Meru County, Isiolo, Tharaka Nithi, Embu and Kirinyaga. The process is quick and affordable. You should not have unfiled returns on your KRA record. Get your nil return filed today.
What If I Have Unfiled Nil Returns from Previous Years?
If you have missed nil returns from 2020, 2021, 2022, 2023, or 2024, you should file them now. KRA allows back-filing of overdue returns. While penalties may apply for late filing, the process of catching up is straightforward and is far better than leaving the liability to grow.
To file back-year nil returns, follow the same process as above but select the relevant year in Step 3 instead of 2025. Work through each unfiled year one at a time.
If you have accumulated penalty notices from KRA, a CPA can review your position and in some cases assist with an application for penalty waiver or payment arrangement.
Frequently Asked Questions: KRA Nil Returns
What is a KRA nil return?
A nil return is an annual tax return filed on KRA iTax declaring zero taxable income for the year. It is required from anyone with a KRA PIN who had no income to declare for the period.
Is filing a nil return mandatory in Kenya?
Yes. If you have a KRA PIN, you are required to file an annual return every year regardless of your income level. A nil return is the correct return to file when you had no taxable income.
What is the penalty for not filing a nil return?
The penalty is Ksh 2,000 per month for individuals, up to a maximum of Ksh 20,000. This applies even to nil returns, not just standard returns with tax payable.
How do I file a nil return on KRA iTax?
Log in to itax.kra.go.ke, navigate to Returns then File Return, select Income Tax Resident Individual, download the Excel form, leave all income fields at zero, validate, generate the zip file, and upload it. Download your Acknowledgement Receipt on completion.
How long does it take to file a nil return?
For a straightforward nil return with no income to declare, the process takes approximately 10 to 15 minutes once you are logged in to the iTax portal.
Can I file nil returns for previous years?
Yes. KRA allows back-filing of overdue returns. You should file all outstanding years as penalties continue to accumulate until the returns are filed. A CPA can assist with multiple years of back-filing efficiently.
Need your nil return filed in Meru County?
Mutea and Associates Certified Public Accountants in Nkubu handles nil returns quickly and affordably for clients across Meru, Isiolo, Tharaka Nithi, Embu and Kirinyaga. Do not leave unfiled returns on your KRA record.
Contact us today See our tax servicesIf your business also needs to comply with E-TIMS, we can help with that too. See our E-TIMS boarding and compliance services.
If your business is also required to comply with E-TIMS, we can help with that too. See our E-TIMS boarding and compliance services.
