Kenya Revenue Authority Blocks Nil Tax Filings in Compliance Crackdown

The Kenya Revenue Authority has implemented a temporary suspension on the filing of nil tax returns, effective until the end of March, as part of a broader strategy to expand the country’s tax base and improve compliance among registered taxpayers.

Deputy Commissioner Patience Njau announced the measure during a Friday press briefing, stating that the suspension would enable the authority to conduct comprehensive data verification and identify individuals who should be contributing to the tax system.

“This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers,” Njau explained. “We have systems in place to monitor other transactions, such as withholding tax, income earned, eTIMS, and customs, among others.”

The suspension, which runs through March 30, has raised questions among taxpayers about the timeline for meeting the June filing deadline, with some expressing concern about a potentially compressed submission window.

During the suspension period, KRA teams will conduct audits across multiple revenue streams, including income taxes, withholding taxes, electronic Tax Invoice Management System (eTIMS) records, and customs documentation, to identify individuals who have evaded tax obligations.

The initiative comes in response to persistent concerns that numerous income-earning Kenyans file nil returns to avoid tax payments. KRA officials noted that the current tax burden falls disproportionately on monthly wage earners, while many other income sources, particularly rental earnings, remain largely untaxed.

According to KRA data, only 8 million of the 22 million registered PIN holders actively pay taxes, with just 4 million maintaining consistent compliance. This limited participation has constrained government revenue collection efforts.

“To mitigate the risks of missing out on that section, at this time, we will not be filing nil returns until the validation is done,” Njau said. “Between now and March 30, you cannot file your 2025 income tax return.”

Beginning this January, KRA has implemented enhanced validation procedures that cross-reference all declared income and expenses against multiple data sources, including TIMS/eTIMS invoices, withholding tax records, and customs import documentation.

In addition to the compliance measures, KRA has introduced an Automated Payment Plan designed to help taxpayers manage outstanding liabilities through structured installment arrangements, including applicable penalties and interest.

To facilitate easier access to tax services, KRA announced Thursday that taxpayers can now utilize a WhatsApp chatbot for various services without visiting physical offices. Commissioner General Humphrey Wattaga confirmed that the platform offers 15 different KRA services, including tax filing, available around the clock.

Taxpayers can access the service by saving the official KRA WhatsApp number, +254 711099999, and initiating contact by sending either “Hi” or “Menu” to begin the interaction.

The comprehensive approach reflects KRA’s determination to broaden tax participation and create a more equitable distribution of the national tax burden across all income-earning segments of the population.