You spent the year hustling, applying for jobs, or maybe your business just didn’t pick up. Your M-Pesa statement is a sad story. So why is KRA sending you reminders to file a tax return? Because in Kenya, even with zero income, you must declare it. This is called filing a nil return.
Ignore it, and you’ll face a KES 2,000 penalty or a KES 10,000 fine. This guide is your shortcut. We’ll walk you through exactly how to file nil returns on KRA iTax when you have no income. No jargon, just the steps. Let’s get this compliance headache sorted before the deadline hits.
What Exactly is a Nil Return?
A nil return is simply a formal declaration to the Kenya Revenue Authority (KRA) that you had no taxable income during a specific period. Think of it like telling your landlord you won’t pay rent this month because you’re away – you still have to communicate.
It applies to anyone with a KRA PIN, even students, job seekers, or someone whose side hustle didn’t make a shilling. Filing it keeps your tax compliance status clean. This is crucial for things like applying for a tender, a loan, or even a passport.
Who Must File a Nil Return in Kenya?
If you have a PIN, the law expects you to file. Common scenarios include:
- Fresh Graduates & Job Seekers: You got your PIN in campus or for that job application but haven’t been employed yet.
- Business Owners in a Bad Season: Your Mpesa till or hardware store in Nakuru made no profit, especially during the low season.
- Individuals on a Break: You took a sabbatical, maternity leave, or were between contracts.
- Landlords with Vacant Units: Your apartment in Kitengela was empty for the whole year.
Step-by-Step: How to File Your Nil Return on iTax
Follow these steps carefully. Do this on a laptop or your phone’s browser for a bigger screen. The iTax site can be tricky on a small mobile screen.
Step 1: Log into Your KRA iTax Profile
Go to the official KRA iTax portal (itax.kra.go.ke). Use your KRA PIN as the username. Your password is the one you created. Forgotten it? Click “Reset Password.” You’ll need the email and phone number linked to your PIN.
Local Tip: If you registered your PIN years ago with an old Safaricom number you no longer use, you must visit a KRA Huduma Centre (like the one at Times Tower or your nearest county office) to update your contacts. Carry your original ID.
Step 2: Navigate to the Return Section
Once logged in, look for the “Returns” menu. Click on “File Return”. You’ll see a list of different tax obligations. For most individuals with employment or other income, you want “Income Tax” and then select “Form ITR (Income Tax Resident Individual)”.
Select the correct year of income. For example, for income earned between January and December 2023, you file in 2024.
Step 3: Filling the ITR Form for Nil Income
This is where people panic. It’s straightforward.
- Personal Details: This auto-fills. Just verify.
- Employment Details: If you had no employer, leave it blank or select “Not Employed.”
- Income Details: This is the critical part. For every section – Employment Income, Rental Income, Business Income – enter KES 0 (zero). Don’t leave them blank. Type “0”.
- Deductions & Reliefs: Since you had no income, you likely have no deductions. You can skip or enter zero.
- Tax Calculation: The system will compute your tax due as KES 0.00.
Step 4: Review, Validate, and Submit
Double-check every page. Ensure all income fields show KES 0. Click “Validate.” If no errors, proceed to “Submit.” You’ll get a confirmation message and a receipt-like document called an iTax Acknowledgement Slip.
Download and save this slip as a PDF on your phone and email it to yourself. It’s your proof of filing. You might need it later to clear a compliance check, especially if you’re applying for a government service.
The Kenyan Context: Deadlines, Penalties, and Real Talk
Understanding the local calendar and costs is key to avoiding unnecessary fines. This isn’t just theory; it’s about your hard-earned cash.
Deadlines You Can’t Ignore
For individuals, the main deadline is 30th June each year for the previous year’s income. Mark it on your phone. The buzz starts around May, just after the long rains, when KRA sends SMS blasts. Don’t wait for the last day. The iTax portal often crashes from the traffic, like Thika Road on a Monday morning.
Penalties in Real Kenyan Shillings
This is where it bites. The penalty for late filing is KES 2,000. If you completely fail to file, the fine can be up to KES 10,000 or 5% of the tax due (which, for nil, is still a percentage of zero, but they can impose the maximum fine).
Think of that KES 2,000. That’s a nice meal for two, a week’s worth of boda boda rides, or airtime and data for a month. Why give it to KRA for nothing?
One Practical, Local-Expert Tip
If you’re filing for the first time and your PIN shows a “Registration” status instead of “Active,” you might not see the “File Return” option immediately after login. Don’t panic. Your PIN might need a simple activation.
Go to the “Services” tab, then “Registration”, and select “Activate PIN”. Follow the prompts. If it’s stuck, a physical visit to a KRA Tax Service Office or Huduma Centre is the fastest fix. Go early, right when they open, to beat the queues.
Common Pitfalls & Questions from Kenyans
Let’s tackle the real questions you’re asking in your head or on your WhatsApp groups.
“I Have a PIN But I’m Still in Campus. Do I File?”
Yes. If you opened that PIN for that mandatory attachment or just in case, you are in the system. File a nil return for each year you had no income. It builds a clean record early, which will help when you finally land that job in Westlands or Mombasa.
“My M-Pesa Business Till Made No Money. Is it Nil?”
If you have a registered business name with a business PIN, you must file a separate nil return for that business entity. Your personal nil return is for your individual income. The business is a separate taxpayer in KRA’s eyes, even if it’s just you.
“What if I Made Some Money But It Was Below the Taxable Threshold?”
This is different from nil. If you earned, say, KES 10,000 from a freelance gig, you must declare that actual amount. The system will calculate that it’s below the personal relief (currently KES 28,800 per year) and result in zero tax payable. But you filed an actual return, not a nil return. Always declare the real figure.
Your Next Move: Get It Done Today
Filing a nil return on KRA iTax is a non-negotiable admin task for any Kenyan with a PIN. It’s about staying compliant and avoiding penalties that make no sense when your pockets are already empty. The process is straightforward: log in, find the ITR form, enter zeroes, validate, and submit.
Set aside 20 minutes today, maybe during your lunch break or after work. Use a stable internet connection—maybe at a cafe or your office. Save that acknowledgement slip. With this done, you can focus on your real hustle: making that income so next year, you’ll be filing a very different, more satisfying return.
Got it done? Share this guide with a friend or family member who needs it. Saving someone a KES 2,000 penalty is a solid favour.