Kenyans with overdue nil returns have an opportunity to clear eligible late-filing penalties under the Kenya Revenue Authority’s tax amnesty, which closes on December 31, 2026.
KRA says taxpayers who file outstanding returns for qualifying periods and have no principal tax due can receive automatic relief from late-filing penalties. They do not need a separate amnesty application once the conditions are met.
The opportunity is particularly relevant to people who obtained a KRA PIN but stopped filing because they had no income. Having nothing to declare does not, by itself, remove an active income-tax filing obligation.
Why a nil return can still attract a penalty
A nil return tells KRA that the taxpayer had no income to declare during the relevant year. Failing to submit that declaration is different from filing it and reporting zero income.
KRA lists the individual income-tax late-filing penalty as the higher of 5% of tax due or Sh2,000. Where no tax is due, that formula produces a Sh2,000 penalty for an overdue annual return.
For illustration, three missed annual returns charged at Sh2,000 each would total Sh6,000 before any applicable relief. This is not a Sh2,000 monthly charge for an individual’s annual nil return.
Who qualifies for relief?
KRA’s public notice identifies three broad situations:
| Tax position | What is required |
|---|---|
| Outstanding qualifying returns, with no principal tax due | File the missing returns during the amnesty period |
| Qualifying penalties or interest only, with no principal tax outstanding | Automatic relief; no separate amnesty application |
| Outstanding qualifying principal tax | Clear the principal amount in full by December 31, 2026 |
Principal tax is the actual tax owed, before penalties and interest. The amnesty does not cancel that underlying amount.
KRA’s notice covers tax liabilities for periods up to December 31, 2025, subject to the programme’s conditions.
Check the period before assuming a penalty will disappear
KRA’s detailed guidance also excludes penalties and interest arising from January 1, 2026. Taxpayers should therefore check the period and nature of each charge rather than treating the amnesty as a cancellation of every balance.
This matters for someone who missed the June 30, 2026 deadline for their 2025 annual return. The year of income and the date a late-filing charge arises are different. Ask KRA to confirm how a recently raised penalty is treated before relying on relief.
File the correct return for each year
A person who earned salary, freelance income or other declarable income should not use a nil return simply because they are currently unemployed or believe no additional tax is payable.
KRA’s filing guide directs employees to use their P9 information and taxpayers with additional income to declare it in the appropriate return. The relevant question is what was earned during the year being filed.
For a year that genuinely requires a nil return:
Log in to the official iTax portal.
Review previous filings under Returns → Consult Return.
Select the nil-return option under Returns for the relevant obligation and missing period.
Check the year carefully before submitting.
Keep the acknowledgement and repeat for other outstanding years.
KRA’s filing FAQs confirm that previous returns can be checked by tax type and period, and that missing returns may need to be filed before a later return is accepted.
What if the penalty remains on iTax?
Automatic eligibility does not necessarily mean the balance disappears immediately after submission. KRA’s published amnesty guidance describes weekly processing for qualifying taxpayers with no principal tax.
Check the ledger and look for the amnesty certificate, which KRA says is sent to the registered email and can be reprinted through iTax.
If a qualifying charge remains, contact KRA with the affected periods, filing acknowledgements and ledger details. Assistance is available on 0711 099 999, at callcentre@kra.go.ke, or through a Tax Service Office or KRA desk at a Huduma Centre. KRA
Filing the missing returns, confirming eligibility and checking the updated account are all necessary steps before treating an old penalty as cleared.
