“NO MORE NIL TAX RETURNS!” – KRA Tells Kenyans, Introduces New Changes
In a major development, the Kenya Revenue Authority (KRA) has scrapped the Nil Returns system and introduced a new “PIN with No Obligation” (PWO) category aimed at enhancing compliance for individuals with no taxable income.
The shift marks a significant change in how taxpayers who are not actively earning income or engaged in taxable activities will remain compliant with the tax regime.
Previously, such taxpayers were required to file Nil Returns annually to remain compliant, a process many found unnecessary and burdensome.
The new system removes that requirement, with people registered under the PWO category no longer required to file annual tax returns, effectively replacing the Nil Returns process altogether.
“iTax has been enhanced to enable Individual Taxpayers (both Residents and Non-Kenyan Non-Residents) to generate a PIN with No Obligation,” KRA announced.
“This is an initiative aimed at enhancing the integrity of the taxpayer register to facilitate a certain category of taxpayers who may not be engaged in gainful and taxable activities but still require a PIN,” the Authority clarified.
According to KRA, this applies to groups such as students and others who may need a PIN for services like accessing higher education loans or conducting transactions that are not taxable income.
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However, KRA noted that should a person registered under the PWO category later begin earning income or engaging in taxable activities, they will be required to update their PIN details and begin filing annual income tax returns.
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The Authority warned that failure to do so could result in penalties for non-compliance. KRA always imposes a penalty of Ksh20,000 or 5 per cent for companies and Ksh2,000 for individuals of the tax due, whichever is higher.
KRA noted that development is still ongoing for taxpayers who already have a PIN with Obligations and who wish to transition to ‘PIN with No Obligation’.
Kenyans seeking to apply for PWO have been directed to do so through the iTax portal, with an Identity card listed as the only requirement.
The latest update comes on the back of a heightened crackdown by KRA on non-compliant Kenyans, with individuals earning income urged to file their annual income tax returns by June 30, 2026, to avoid penalties.
“NO MORE NIL TAX RETURNS!” – KRA Tells Kenyans, Introduces New Changes
