The Kenya Revenue Authority (KRA) has reinstated the Nil Returns option on its iTax platform, following the completion of internal system checks.

The move comes two weeks after the option was switched off, a decision that sparked confusion and concern among taxpayers who earn no taxable income.

A spot check on the iTax portal on Monday, February 9, confirmed that the Nil Returns feature is now active.

In a statement, KRA said the reinstatement followed the completion of system validation ahead of the next income tax filing cycle.

“The Nil Filing return option has been reinstated after the necessary system validations have been embedded for the 2025 returns to be filed after March 31, 2026,” the authority said.

KRA clarified that nil filers will be required to use the option when submitting January–December 2025 income tax returns after March 31.

The authority added that other filings remain unaffected. “Filing for 2024 income tax returns and prior periods, as well as monthly obligations such as PAYE, excise duty, monthly rental income and turnover tax, can proceed as before,” the statement said.

Why KRA suspended Nil Returns

The temporary suspension was part of a wider push to tighten tax compliance. KRA used the period to cross-check taxpayer records against other data, including income tax, withholding tax, eTIMS, and customs transactions.

Officials say the goal was to identify individuals declaring zero income despite signs of economic activity.

Speaking in late January, Deputy Commissioner Patience Njau said the exercise was meant to spread the tax burden more fairly.

“Out of about 22 million registered PIN holders, only 8 million are active taxpayers. Even then, only around 4 million pay taxes consistently,” Njau said.

She added that the gap limits the government’s ability to raise revenue and fund public services.

“This year, our focus is to convert nil filers, non-filers and zero payers into compliant taxpayers,” she said, noting that KRA systems can now track income through several channels.

Relief for genuine nil filers

While the suspension drew criticism from some quarters, tax experts and workers without income argued that genuine nil filers should not be penalised.

With the option now restored, KRA has urged taxpayers to file accurately and on time, warning that false nil declarations could attract penalties once cross-checking is complete.

As the June filing deadline approaches, the authority says compliance, not punishment, remains the priority.