KRA Suspends Nil Tax Returns Until March
The Kenya Revenue Authority has suspended the filing of nil tax returns until the end of March as part of a drive to strengthen tax compliance.
The decision was announced on Friday by Deputy Commissioner Patience Njau, who said the authority is focusing on identifying individuals and businesses that declare no income despite evidence of taxable activity. She said KRA intends to convert nil filers, non-filers and zero payers into active taxpayers through closer scrutiny of declared returns.
According to Njau, returns will be validated using data from withholding tax submissions, eTIMS invoices, income records and customs declarations. The authority believes this approach will help detect under-reporting and reduce tax evasion across different sectors of the economy.
The timing of the suspension has raised concerns among some taxpayers, given that the statutory deadline for filing annual returns remains in June. The move effectively shortens the period available for those who typically file early in the year. Njau acknowledged the challenge but said the validation exercise is necessary to improve fairness and accuracy in the tax system.
KRA data shows that while about 22 million individuals are registered with Personal Identification Numbers, only 8 million are considered active taxpayers. Of these, roughly 4 million consistently meet their tax obligations. The authority says this imbalance has limited revenue collection and placed a disproportionate burden on salaried workers, while other sources of income, including rental earnings, remain under-declared.
To support compliance, KRA has introduced several administrative measures. From January, all tax returns are being cross-checked against official data sources to ensure consistency between declared income and existing records. The authority has also launched an Automated Payment Plan that allows taxpayers to clear outstanding taxes, penalties and interest through instalment arrangements.
KRA is also expanding digital access to its services. Commissioner General Humphrey Wattaga announced the introduction of a WhatsApp chatbot offering 15 services, including assistance with tax filing. The service is available at all hours through the official number +254 711 099999.
The suspension of nil returns forms part of KRA’s broader strategy to widen the tax base while combining stricter enforcement with improved support systems for taxpayers.
