Nil Filers Targeted as KRA Suspends Returns and Expands Data Audits | BossNana International Radio

Ms. Patience Njau, Deputy Commissioner, Taxpayer Experience at KRA

The Kenya Revenue Authority (KRA) has temporarily suspended the filing of nil tax returns until the end of March as part of a broader strategy to convert nil filers and non-filers into active, tax-paying citizens.

Deputy Commissioner Patience Njau confirmed the move, saying the suspension will allow the authority to scrutinize available data and strengthen compliance across the taxpayer register.

The decision has, however, triggered concerns among taxpayers about the filing timeline, with concerns that the pause could shorten the window available to meet the June tax filing deadline.

During the suspension period, KRA teams will intensify data analysis and audits across multiple revenue streams, including income tax, withholding tax, electronic tax invoices under TIMS and eTIMS, and customs records. The aim is to identify individuals and businesses earning taxable income but remaining outside the tax net.

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

She explained that the temporary freeze on nil returns is designed to prevent revenue leakage while validation exercises continue.

“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. Between now and March 30, you cannot file your 2025 income tax return,” she added.

The move follows persistent concerns that many Kenyans with taxable income continue to declare nil returns as a way of avoiding taxes. KRA said the suspension also seeks to distribute the tax burden more fairly, noting that salaried employees currently shoulder most of the country’s tax obligations while other income earners, including those in the rental sector, often remain untaxed.

According to KRA data, Kenya has about 22 million registered individual taxpayers with KRA PINs, but only 8 million actively pay taxes. Of these, just 4 million consistently comply, significantly limiting the government’s ability to maximize domestic revenue collection.

KRA also reminded taxpayers that beginning in January, it will validate all income and expenses declared in tax returns against its internal data sources. These include TIMS and eTIMS invoices, withholding tax records, gross income declarations, and customs import data.

In a bid to support compliance, the authority announced plans to roll out an Automated Payment Plan that will allow taxpayers to clear outstanding liabilities more conveniently. Under the arrangement, eligible taxpayers will be able to settle taxes, penalties, and interest through structured installment plans.

Meanwhile, KRA continues to expand digital services to simplify tax filing. On Thursday, the authority announced that Kenyans can now file their tax returns through a WhatsApp chatbot, eliminating the need for physical visits to KRA offices.

Commissioner General Humphrey Wattanga confirmed that the chatbot currently offers 15 services, including tax filing, and operates around the clock.

Kenyans can access the service by saving the official KRA WhatsApp number +254 711099999 and initiating a chat by sending “Hi” or “Menu,” providing a faster and more accessible way to interact with the tax authority.

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