“Nil Returns filing to resume after the end of March 2026,” says KRA
KISUMU, 4th February,2026 – The Kenya Revenue Authority (KRA) has established a well-elaborated mechanism to broaden its tax base by introducing improved customer-centric services, simplified tax solutions, and ongoing engagement with the public.
According to the tax agency, these initiatives are mainly aimed at providing support and reducing the pressure on taxpayers (individuals and businesses) to become compliant.
In its efforts to expand the tax base, KRA has involved the media as a “strategic partner to send the right message of fairness and support so that the public can understand the tax system and be willing to pay.”
Tax Education
During a roundtable meeting with a battery of Kisumu journalists on March 3rd, KRA Commissioner for Micro and Small Taxpayers, George Obell emphasised their focus on leveraging local communities for effective messaging.
“Our main goal is to ensure that tax is paid fairly. You will soon see our representatives on the ground engaging with MSMEs. We also plan to reduce costs through distribution, enabling more people to fall into the tax bracket,” Obell stated during the MSME Dialogue Forum held at a Kisumu hotel.
To encourage timely compliance, he announced the introduction of daily Turnover Tax Payments to ease cash flow for small businesses. “They will make payments based on their daily sales, rather than a large lump sum at the end of the month.”
This applies to businesses with an annual turnover exceeding Sh1 million but not surpassing or expected to surpass Sh25 million.
KRA states: “The new system will enhance fairness, broaden the tax base, and foster a supportive environment for business growth and voluntary compliance.”
Other measures include educating people to generate e-TIMS tax invoices by dialling *222# code, pay income taxes via the Huduma Popote initiative provided in Huduma Centres countrywide, where various services such as tax compliance, and obtaining a Tax Compliance Certificate (TCC), PIN registration, and taxpayer education are provided.
In addition, the agency has committed to establishing 80 Tax Clubs in schools, tertiary colleges, and universities nationwide.
“We are also partnering with other government agencies to integrate tax education into the KICD Curriculum across schools and learning institutions. This will help students understand that paying taxes is a legal obligation.”
Nil Returns
On her part, KRA Deputy Commissioner for Policy and Tax Advisory Esther Wahome reiterated their focus on reaching out to those who are capable of paying tax but are not compliant.
She revealed that currently, 22 million Kenyans have registered for the KRA PIN, with 17 million filing Nil Returns, 3.2 million being formally employed, and only 6 million paying tax.
“We introduced e-TIMS to track Nil Returns filers, and it has helped us identify income generated by KRA PINs linked to them. Recently, taxpayers who attempted to file Nil Returns for 2024 were flagged because recent transactions indicated they earned income in 2025,” Wahome explained.
The agency’s statement partly reads: “We compared data submitted by your employer and your e-TIMS account to identify mismatches in their latest returns. Consequently, we advise taxpayers to log into the iTax portal and settle any pending tax dues.”
Amid protests from certain contractors nationwide, the tax authorities have reaffirmed their commitment to negotiating payment plans and supporting contractors with outstanding bills owed to both levels of government (national and county).
“We do not close e-TIMS accounts of contractors awaiting pending bills with the government,” Ms Wahome assured.
Rebranding
To foster trust and confidence, KRA is also rebranding to present a more friendly image in terms of service provision.
“During our engagement sessions, some have expressed that they find the ‘lion symbol’ and red colours on our logo intimidating. We are focused on making the agency appear more approachable,” she added.
Regarding non-remittance of deductions to KRA by some employers, the commissioners advise: “All employees should request their employers a copy of their P9 form or check in their iTax portal account to verify that their employers are remitting the deductions from their monthly salaries.”
