The Kenya Revenue Authority (KRA) has announced a temporary suspension of nil tax return filings until March 30, 2025, in a move aimed at converting nil filers and non‑filers into active taxpayers.
Nil returns are filed by individuals with a KRA PIN who had no taxable income or whose income fell below the taxable threshold during the tax year (January 1 – December 31). They are a mandatory declaration for unemployed individuals, students, or those without active business or employment income. Filing ensures compliance with tax laws and helps avoid penalties, even when no income is earned.
Deputy Commissioner Patience Njau explained the rationale behind the suspension:
“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 that between now and March 30, taxpayers will not be able to file their 2025 income tax returns as KRA validates data across multiple sources, including TIMS/eTIMS invoices, withholding tax records, and customs import data.
Why the Suspension Matters
The move is designed to curb tax evasion by individuals who file nil returns despite earning taxable income. Out of 22 million registered taxpayers with KRA PINs, only 8 million actively pay taxes, and just 4 million consistently meet their obligations. This imbalance has historically left the tax burden on monthly income earners, while groups such as rental income earners remain under‑taxed.
By suspending nil returns, KRA aims to spread the tax burden more evenly and ensure that all income‑earning Kenyans contribute fairly.
New Tools to Ease Compliance
To support taxpayers, KRA has rolled out several initiatives:
- Automated Payment Plan: Eligible taxpayers can now pay outstanding liabilities, including penalties and interest, through structured instalments. This makes it easier to manage obligations without financial strain.
- WhatsApp Chatbot: Kenyans can file tax returns and access 15 KRA services via WhatsApp, available 24/7. To use the service, save +254 711099999 and send “Hi” or “Menu” to start.
Record‑Breaking Revenue Performance
The suspension comes as KRA begins the second half of the Financial Year 2025/26 on a strong note. In December 2025, the authority collected Kshs 307.634 billion against a target of Kshs 284.969 billion, achieving a 108% performance rate and a 29.3% growth compared to the same period last year.
- Exchequer Revenue: Kshs 284.265 billion vs target of Kshs 261.758 billion, recording a surplus of Kshs 22.507 billion and a growth of 30.1%.
- Customs & Border Control: Kshs 85.927 billion, the highest monthly collection in KRA’s history, driven by strong growth in oil taxes and non‑oil imports.
- Domestic Taxes: Kshs 221.287 billion vs target of Kshs 201.593 billion, translating to a 109.8% performance rate and a 31.7% growth.
Oil taxes grew by 23.9%, supported by VAT on Oil, Import Duty, Railway Development Levy, Petroleum Development Levy, and Road Maintenance Levy Fund. Non‑oil taxes also performed strongly, growing by 23.4%, boosted by a 14.9% increase in non‑oil import values.
KRA remains optimistic about meeting its FY 2025/26 target of Kshs 2.968 trillion, representing a 15.4% growth over the Kshs 2.572 trillion collected in FY 2024/25.
The suspension of nil returns is both a compliance measure and a signal of KRA’s determination to expand the tax base. With enhanced data validation, digital filing tools, and record‑breaking revenue performance, the authority is tightening enforcement while making it easier for taxpayers to meet obligations.
For Kenyans, this is the time to get tax affairs in order, whether through structured payments or digital filing to avoid last‑minute penalties before the June 2025 deadline.
KRA has also expressed appreciation to compliant taxpayers for their continued contribution to strengthening Kenya’s economic sustainability.
