Missed your tax return deadline in Kenya? Find out what happens if you don’t file a KRA return, including penalties, TCC issues, and how to fix it in 2025.
📅 Who Must File a KRA Return?
If you have a KRA PIN, you are expected to file a return every year — regardless of whether you:
- Earned income
- Are in school or unemployed
- Closed your business
- Are employed, self-employed, or in the diaspora
✅ Even if you made no money, you’re legally required to file a Nil Return before June 30 every year.
❌ What Happens If You Don’t File?
| Consequence | What It Means |
|---|---|
| 💸 Automatic Penalty | Individuals: Ksh 2,000 Non-individuals: Ksh 20,000 |
| ⛔ Blocked KRA PIN | Your PIN status may become “inactive” or “non-compliant” |
| 📤 No TCC | You won’t get a Tax Compliance Certificate (TCC) |
| 📑 Loan or Job Delays | You may be denied government jobs, business tenders, or bank loans |
| 🚨 Compliance Audit | KRA may open a review or ask you to explain your transactions |
| 🔁 Accumulating Penalties | If left unresolved, your penalties grow year by year |
⚖️ Real-Life Examples
- Lydia, a student, didn’t file nil returns for 3 years → TCC rejected during her passport application
- James, a freelancer, ignored returns → Ksh 12,000 in penalties accrued
- Rita’s business was flagged as inactive on iTax due to 4 years of non-filing
🧾 How to Fix It
✅ Step 1: File Your Pending Returns
- Log in to iTax
- File all past due returns, even if late
- If you had no income → file Nil Return
- If you earned → declare correctly
✅ Step 2: Check Penalties
- Go to “Debt & Enforcement” → “Ledger”
- Review penalties owed and request waiver if eligible
✅ Step 3: Apply for Waiver (Optional)
- Use the Penalty Waiver Application on iTax
- Explain valid reason (e.g., lost job, illness, PIN inactive)
- Upload supporting documents if needed
📌 Key Deadlines to Remember
| Return Type | Filing Deadline |
|---|---|
| Income Tax (Individual) | June 30 every year |
| Turnover Tax (TOT) | 20th of the next month |
| VAT & PAYE | 20th monthly |
| Nil Return | Also by June 30, if applicable |
💬 FAQs
Q: I’m unemployed. Why should I file?
Filing a Nil Return keeps your KRA profile compliant — and helps you avoid Ksh 2,000 fines.
Q: My PIN was just for HELB or NHIF. Do I still file?
Yes. Once you’re issued a PIN, you must file annually unless it’s deactivated officially.
Q: Can KRA waive the penalty?
Yes, if you have a valid reason and apply via iTax.
Q: What if I never filed for 5+ years?
You’ll need to backfile those years. You may also consider applying for waiver of penalty.
Don’t let an inactive PIN or penalty stand in your way.
💬 Need help filing past returns or applying for waivers? Ushuru.com has your back.
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