It’s that time of the year again. The June 30th deadline is looming like Nairobi traffic on a Monday morning. You’re getting those KRA reminder emails, your accountant is texting, and the panic is starting to set in. Don’t be that person scrambling at the iTax portal on June 29th with a slow internet connection.
This guide cuts through the noise. We break down the 7 non-negotiable things you must do before the KRA tax returns deadline every year. No jargon, just clear, actionable steps for salaried employees, side-hustlers, and business owners. Let’s get you sorted and avoid those nasty penalties.
1. Gather Your Documents Early (Don’t Wait for June)
Treat this like preparing for the long rains. You don’t wait for the downpour to fix your roof. Start gathering your documents by April or May. Last-minute searches for a missing P9 form from an old job are a nightmare.
Create a physical folder or a dedicated folder on your phone/computer. This makes the entire filing process smooth and less stressful.
Your Essential Document Checklist:
- Your KRA PIN Certificate: You need your PIN and the associated details.
- P9 Form(s): From all employers in the year of income. If you changed jobs, you need one from each.
- Bank Statements: Especially for any interest income earned (exceeding Ksh 12,000).
- Receipts for Allowable Deductions: M-Pesa statements for NHIF/NSSF, school fee receipts, mortgage interest certificates from your bank, and medical insurance receipts.
- Business Records (if self-employed): Invoices, expense receipts, and your cashbook or profit & loss statement.
2. Log Into iTax NOW and Check Your Compliance Status
Don’t assume your iTax profile is ready. Log in today, even if you’re not filing yet. This is like checking your car’s inspection status before a long trip to Mombasa.
You need to confirm a few things. Is your email and phone number updated? Are there any outstanding returns from previous years blocking you? Are your tax obligations (like VAT or Withholding Tax) correctly listed? Fixing these issues takes time, so do it early.
A pro tip: If you’ve forgotten your iTax password, reset it immediately. The OTP system can be slow during peak filing season. Do this in the “off-peak” season to save yourself a major headache.
3. Reconcile Your Income from ALL Sources
KRA isn’t just interested in your salary. The iTax system is getting smarter, and data from banks, SACCOs, and other platforms is being integrated. You must declare all income.
This includes rental income, freelance gigs paid via PayPal or Payoneer, dividends, and even that consistent side hustle selling mitumba or baking cakes. Add it all up. Under-declaring is a sure way to get a tax demand letter later.
For the hustlers: Keep a simple record. A notes app on your phone or a basic Excel sheet tracking what came in from your side projects will make this step effortless.
4. Maximize Your Allowable Deductions and Reliefs
This is where you legally reduce your tax bill. Many Kenyans leave money on the table by not claiming what they’re entitled to. Think of it as getting a discount for your responsible spending.
You can claim relief on your NHIF, NSSF, life insurance premiums, and your owner-occupier interest on your mortgage (up to Ksh 300,000 annually). Also, don’t forget the personal relief of Ksh 2,400 per month (Ksh 28,800 annually).
Got kids in school? Keep those fee receipts. Education expenses for your children or spouse are also deductible. Every shilling claimed is a shilling saved from your tax payable.
5. Calculate Your Tax Payable (Or Refund Due)
Now, do the math. Use the KRA tax bands or a simple online calculator. Subtract your total deductions and reliefs from your total income to get your chargeable income. Then apply the tax rates.
Compare this final “tax payable” figure with the total tax already deducted from your payslips (PAYE). If more was deducted, you are due a refund. If you owe more, you need to prepare to pay.
Doing this calculation beforehand prevents shocks. You don’t want to file and suddenly realize you owe KRA Ksh 50,000 that you haven’t budgeted for.
6. The Kenyan-Specific Section: Navigating iTax Like a Pro
Let’s be real, the iTax portal can be a maze, especially during the June rush. Here’s the local knowledge you need. First, the best time to access iTax is very early in the morning (before 8 AM) or late in the evening (after 10 PM). Avoid lunch hour and month-end like you’d avoid Kenyatta Avenue during rush hour.
If you get stuck, don’t just give up. Use the official channels smartly. The KRA call centre can be busy, but their official Twitter (X) support team, @KRACare, is surprisingly responsive during business hours. For complex issues, consider visiting a Tax Service Office. The one at Times Tower is always packed; the smaller offices in areas like Upper Hill or even your local town might be quicker.
Regarding cost: Filing your return is free. If you’re paying someone to do it for you, a fair price for a simple return (salaried employee) ranges from Ksh 1,000 to Ksh 3,000. For business returns, it varies based on complexity. Always get a receipt.
Remember, after the June 30th deadline, penalties kick in. It’s a Ksh 10,000 fine or 25% of the tax due, whichever is higher, plus interest at 1% per month. That’s a serious dent in your wallet.
7. File AND Pay (If You Owe) Before the Deadline
Filing the return is not the end. If your calculation shows you have a balance, you must make the payment. Simply filing without paying the debt still makes you non-compliant and liable for penalties.
Use the approved payment methods: M-Pesa, your bank’s internet banking, or at a KRA-appointed bank branch. After paying, always go back to iTax and validate the payment to ensure it’s reflected against your account. This final step closes the loop.
Once everything is done, download and save a copy of your submitted return and the payment receipt (if any). This is your proof of compliance. Keep it safe, just like you keep your logbook for NTSA inspections.
Conclusion
Beating the KRA tax returns deadline is about preparation, not panic. Start now, gather your documents, understand your income and deductions, and engage with the iTax platform early. Treat it as a mandatory annual financial health check-up that saves you from fines and stress.
The key is to never be part of the last-minute stampede. Get it done, enjoy the peace of mind, and move on with your life. Your future self, enjoying a penalty-free July, will thank you.
Got a pro tip for filing taxes in Kenya? Share it in the comments below to help out a fellow taxpayer!