Coming back home after years abroad feels good, but then you remember your foreign bank accounts, shares, or that rental property in London. The thought of dealing with KRA is enough to give anyone a headache, si rahisi.
This article breaks down the entire declaration process into simple, clear steps you can follow. You will learn exactly what forms to fill and how to submit everything without stress, taking less than an hour once you have your documents ready.
What You Need Before You Start
- Your KRA PIN: You cannot declare anything without an active Personal Identification Number. If yours expired while you were away, visit iTax or any KRA office to reactivate it first.
- Foreign account statements: Get official bank statements from every account you hold abroad. KRA wants to see the balances as at the date you became a Kenyan tax resident again.
- Property valuation documents: For any land, house, or commercial property outside Kenya, have a recent valuation report. If you bought it years ago, gather the original sale agreement too.
- Share or investment certificates: Collect proof of ownership for any stocks, bonds, unit trusts, or cryptocurrency holdings. Screenshots from trading apps are acceptable if signed by the platform.
- Details of income earned abroad: Prepare records of any rental income, dividends, or business profits your foreign assets generated. KRA will want to know about this for tax purposes.
- Passport and travel history: Have your passport ready to show entry and exit stamps. This helps KRA confirm when you returned and became a resident for tax purposes.
Step-by-Step: How to Declare Foreign Assets When You Return to Kenya in Kenya
These six steps take about 45 minutes to an hour if you have all your documents ready and your KRA PIN is active.
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Step 1: Log into the iTax portal and update your residency status
Go to iTax.kra.go.ke and log in with your KRA PIN and password. Navigate to “Returns” then “Amend Returns” and change your tax residency status from “Non-Resident” to “Resident” with effect from the date you arrived back in Kenya. This step is critical because the system will not allow you to declare foreign assets while it still considers you a non-resident.
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Step 2: Locate the Foreign Assets Declaration form
Once your residency is updated, go to “Returns” then “File Return” and look for Form ITX-FAD under the “Other Returns” dropdown. This is the specific form KRA uses for foreign asset declarations. Many Kenyans miss it because it is not listed under the main income tax returns section.
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Step 3: Fill in your personal and contact details
Complete the top section with your current Kenyan phone number, physical address, and email. KRA will use these to send any follow-up queries, so double-check everything. If your phone number changed since you left Kenya, update it in your iTax profile first.
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Step 4: List every foreign asset you own
For each asset, enter the type (bank account, property, shares, etc.), the country where it is located, and its current market value in KES. Use the Central Bank of Kenya exchange rate from the date you are filing. Do not guess the values — use your bank statements and valuation reports.
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Step 5: Declare any income from your foreign assets
In the income section, report any rental income, dividends, interest, or capital gains your foreign assets generated during the period. KRA expects you to declare this income and pay tax on it at the normal Kenyan rates. If you already paid tax abroad, keep your foreign tax receipts to claim double taxation relief later.
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Step 6: Submit the form and pay any applicable fees
Review everything carefully, then click “Submit”. There is no filing fee for Form ITX-FAD itself, but if you declared foreign income, you must pay the tax due immediately through the iTax payment options. Use M-Pesa PayBill number 572572 with your KRA PIN as the account number for quick payment.
Common Problems and How to Fix Them
iTax shows “No Active Return Period” when you try to file
This happens because your KRA PIN was dormant while you were abroad. Visit your nearest KRA service centre with your passport and a letter explaining your return date. They will activate your PIN and open the return period for you within one working day.
You cannot find Form ITX-FAD in the dropdown menu
This usually means your residency status is still set to “Non-Resident”. Go back to “Amend Returns” and change it to “Resident” first. The form only appears for resident taxpayers. If it still does not show, clear your browser cache and log in again.
KRA queries the value you declared for a foreign property
This is common when your declared value differs significantly from market rates. Attach a professional valuation report from a certified valuer in the country where the property is located. KRA accepts foreign valuation reports as long as they are translated to English if necessary.
You need help but cannot reach KRA by phone
Call the KRA Contact Centre on 020 4 999 999 or 0711 099 999 between 8am and 5pm on weekdays. For complex foreign asset issues, ask to be transferred to the International Tax Division. Alternatively, visit the KRA Times Tower offices in Nairobi and ask for the Large Taxpayers Office desk.
Cost and Timeline for How to Declare Foreign Assets When You Return to Kenya in Kenya
The declaration process itself has no government fee, but you will incur costs for obtaining supporting documents and paying any tax due on foreign income. Here is what to expect:
| Item | Cost (KES) | Timeline |
|---|---|---|
| Filing Form ITX-FAD on iTax | Free | 30 minutes online |
| Foreign bank statement request | Varies by bank (approx. 1,000-3,000) | 3-7 working days |
| Professional property valuation (foreign) | Varies by country (approx. 10,000-50,000) | 1-2 weeks |
| Tax on declared foreign income | Based on income amount (10%-30%) | Paid instantly via M-Pesa or bank |
| KRA PIN reactivation (if dormant) | Free | 1 working day at KRA office |
Most Kenyans spend between KES 2,000 and 15,000 on document preparation aside from any tax payable. Costs do not differ by county since everything is processed centrally through iTax. The hidden cost many people forget is paying for certified translations if your foreign documents are not in English.
The Bottom Line
Declaring your foreign assets when you return to Kenya is simpler than most people think. The secret is having your KRA PIN active and all your statements ready before you open iTax — that alone saves you days of back and forth. Do not delay, because penalties for late declaration add up quickly and are not worth the stress.
If this guide helped you, share it with a friend who is also planning to come back home. Have questions about your specific situation? Drop them in the comments and we will help you sort it out.
Frequently Asked Questions: How to Declare Foreign Assets When You Return to Kenya in Kenya
Do I have to declare foreign assets if I am not earning any income from them?
Yes, you must declare all foreign assets regardless of whether they generate income. KRA requires disclosure of the assets themselves, not just the income they produce.
Failure to declare can result in penalties even if no tax is due, so list everything you own outside Kenya.
What happens if I miss the deadline for declaring my foreign assets?
KRA imposes a late filing penalty of KES 2,000 per month for each month the declaration is overdue. This applies even if you owe no tax on the assets.
If you realise you missed the deadline, file immediately to stop the penalties from accumulating further. Voluntary disclosure often attracts leniency compared to waiting for KRA to discover the omission.
Do I need to declare foreign assets every year or just once?
You must declare your foreign assets once when you first become a Kenyan tax resident, and then update the declaration annually when filing your annual income tax return.
Each year you will report any changes in asset values, new acquisitions, or disposals. The annual update takes about 15 minutes on iTax once your initial declaration is on file.
Can I declare foreign assets through an agent or must I do it personally?
You can authorise a tax agent registered with KRA to file on your behalf. The agent must have a valid KRA PIN and be listed as your tax representative on iTax.
Many Kenyans use agents for the first declaration to ensure accuracy, then handle annual updates themselves. Agent fees typically range from KES 5,000 to 15,000 for the initial filing.
What if I cannot obtain official documents for assets in a country with poor record-keeping?
KRA accepts sworn affidavits and self-declarations when official documents are genuinely unavailable. Attach a written explanation of why you cannot obtain the standard documents.
This is common for assets in countries with informal property systems. KRA will assess each case individually and may request additional proof or a meeting to verify your claims.