The Kenya Revenue Authority (KRA) has clarified how employed Kenyans and business owners with side hustles should file their annual income tax returns, addressing widespread confusion.
KRA stated, “If employed, but have additional income, declare your employment income together with any additional income, for example, freelance, consultancy, online services, farming, or other income-generating activities.”
The authority explained that filing taxes based on employment income alone does not provide an accurate reflection if a taxpayer earns money from other activities.
To ensure compliance, employed Kenyans with side hustles should use their P9 tax deduction form from iTax when declaring employment income. Once accessed, taxpayers must include all additional income earned during the year, even if it was not received consistently.
Filing Guidance for Independent Business Owners
For Kenyans who operate businesses independently without formal employment, KRA directed them to prepare records of their business income and allowable expenses for the year.
The authority instructed: “Declare all income earned during the year of income if the income was not accounted for in the monthly Turnover Tax (TOT) regime.”
KRA also reminded taxpayers who had no income in 2025 but hold a KRA PIN with an income tax obligation that they must still file a Nil Return.
The filing window runs from January 1 to June 30, 2026, and the authority encouraged anyone facing challenges to contact KRA through the call centre, email, or official social media platforms.
Income Sources to Declare
KRA clarified that taxable additional income can come from a variety of sources, including:
- Freelancing and consultancy services
- Online and digital work
- Farming and agribusiness ventures
- Rental income
- Small businesses and other side gigs
By declaring all sources of income in a single tax return, taxpayers can avoid penalties and ensure their returns accurately reflect their earnings.
The post How Kenyans With Side Hustles Should File Income Tax Returns appeared first on Bossnana.
