Filing NIL returns in Kenya for consultants, freelancers and SMEs in 2026

Temporary Suspension of Nil Returns

If you usually file nil tax returns (because you had no income or were below the taxable threshold last year), there are new changes you need to know before the June filing deadline.

The Kenya Revenue Authority (KRA) has temporarily suspended the filing of nil tax returns until March 30th this year(2026) to allow for data validation and improved compliance checks. This means you cannot file nil returns right now while KRA cross-checks income information against tax data sources like eTIMS, withholding tax records, and customs data.

This move aims to reduce under-reporting by people who technically earn taxable income but still file nil returns. It’s part of a broader effort to bring more taxpayers into the tax net and make sure everyone declares correctly.

Keep the June deadline in mind even though nil returns are on hold for now, the statutory deadline for filing annual returns remains June 30th. So once the suspension is lifted, make sure to file your return (nil or otherwise) before the deadline to avoid penalties.

Therefore, Until March 30, nil returns can’t be filed — but once the system reopens, make sure to file on time and take advantage of the digital tools available to stay compliant and avoid fines!

Other changes

KRA has been improving digital filing tools — including automated validation and chatbot support via WhatsApp — to make filing easier once nil returns resume. There are new data validation rules that mean KRA will cross-check declared income and expenses against official records.

What This Means for Taxpayers & Finance Teams

Nil returns remain a legal requirement — even if you have no income, you must be ready to file once processing resumes. Failure to file (even nil) can attract penalties and affect compliance certificates, which are often needed for tenders, contracts, and banking.

Plan ahead and monitor KRA announcements as iTax upgrades are rolled out. As finance and accounting professionals, keeping up with these system changes helps us protect our clients and organisations from unintended compliance gaps.