đź’ˇ Introduction
Every year between January 1st and June 30th, millions of Kenyans rush to file their income tax returns — including those who did not earn any taxable income during the year.
Whether you’re a student, unemployed Kenyan, new graduate, non-working spouse, or even an employed Kenyan whose employer did not upload a P9, it is still mandatory to file your annual return.
Filing a Nil Return is quick (under 5 minutes), completely free, and prevents penalties of KSh 2,000 for individuals and KSh 20,000 for non-individuals, as per the Tax Procedures Act, 2015.
This is the most updated 2025 guide — based on KRA iTax, Finance Act changes, and current compliance requirements.
1. Who Should File a Nil Return in Kenya? (2025 Rules)
You should file a Nil Return if you did NOT earn any taxable income during the year.
✔️ You should file a Nil Return if:
- You are unemployed
- You are a student with no income
- You are not doing any business
- You have no side hustle income
- You did not earn rental income
- You had no PAYE income
- You have a KRA PIN but no active income source
❌ You CANNOT file a Nil Return if:
If you had ANY income, including:
- Employment income (PAYE)
- Business income
- Rental income
- Online hustle income (YouTube, TikTok, writing, affiliate, Fiverr)
- M-PESA agent income
- Uber/Bolt/boda income
- Farming income
- Consultancy payments
- Commission or gig work
- Income via eTIMS invoices
If you earned anything, you must file a normal return, not a Nil Return.
2. What You Need Before Filing
You only need:
- Your KRA PIN
- Your iTax password
- Access to your email (for OTP verification)
If you’ve forgotten your password, you can reset it on iTax in under 2 minutes.
3. Step-by-Step: How to File a Nil Return on iTax (2025)
Step 1 — Log in to iTax
Visit: itax.kra.go.ke
Enter:
- KRA PIN
- Password
- Security answer
Step 2 — Go to the Returns Section
Click:
Returns → File Return
Choose:
- Tax Obligation: Income Tax – Resident Individual
Step 3 — Select the Return Period
iTax automatically sets:
- From: 01/01/2024
- To: 31/12/2024
(If you’re filing in 2025, you file the previous year’s return.)
Step 4 — Select “Nil Return”
On the form:
- Tick Yes under “Do you wish to file a Nil Return?”
- Confirm you had no income for the year.
Step 5 — Submit Your Return
Click:
Submit → OK
Download your Acknowledgement Receipt (e-Return Receipt).
This proves that you’ve filed.
🎉 You’re done!
You’ve successfully filed your 2025 Nil Return in less than 5 minutes.
4. Penalties for Not Filing Nil Returns
Under the Tax Procedures Act, failure to file an annual return attracts:
| Category | Penalty |
|---|---|
| Individual | KSh 2,000 |
| Company | KSh 20,000 |
This applies even if you had zero income.
âť— Important
KRA does not waive the penalty for ignorance or forgetfulness.
5. Why Filing Nil Returns Matters (2025)
✔️ Keeps your KRA account clean
Avoids penalties, debt enforcement & compliance flags.
✔️ Needed for Tax Compliance Certificate (TCC)
You cannot get a TCC if even one return is missing.
✔️ Prevents KRA automatic enforcement
KRA systems now detect:
- PIN inactivity
- Missing returns
- Income inconsistencies
✔️ Required for job applications
Most HR departments require a filed return.
✔️ Protects your future compliance
A clean record ensures smooth tax processing later.
6. Common Mistakes Kenyans Make When Filing Nil Returns
| Mistake | Problem | Fix |
|---|---|---|
| Filing Nil Return when you earned money | Illegal & risk of audit | File a normal return |
| Using wrong period | Rejects return | Always choose 01/01 to 31/12 |
| Forgetting to download receipt | No evidence | Download immediately |
| Losing iTax login | Cannot file | Reset password |
| Filing only when needed | Misses deadlines | File every year |
7. Frequently Asked Questions (FAQ)
Q1: Can I file a Nil Return if my employer didn’t upload P9?
No — you must ask your employer to upload payroll. Nil Return is illegal if you earned a salary.
Q2: What if I was unemployed for 10 months, but worked for 2 months?
You must file a normal return.
Q3: Do students need to file returns?
Yes — if you have a KRA PIN.
Q4: Can I file Nil Return on my phone?
Yes — iTax is fully mobile-friendly.
Q5: Do I need a TCC if I just started working?
Yes — some employers require it.
8. Conclusion + Call to Action
Filing a Nil Return is simple, fast, and mandatory for any Kenyan with a PIN who earned no income during the year. It takes under 5 minutes and saves you from costly penalties.