The National Treasury has announced new changes to nil returns filing rules in Kenya aimed at improving tax compliance and reducing congestion on the digital tax system. The move follows recent adjustments by the Kenya Revenue Authority which introduced the “PIN with No Obligation” category for individuals without taxable income.
Speaking during an X Space session with Kenyans, Cabinet Secretary John Mbadi said that all taxpayers filing nil returns will be required to submit them immediately after December each year. He said the change is part of a new staggered filing system designed to prevent last-minute rush experienced before the June 30 deadline.
According to the CS, the current system requires all taxpayers to file their returns by June 30, leading to heavy traffic on the iTax platform as many users delay submission until the final days. He noted that system failures during peak periods have at times led to penalties for late filing even when delays were beyond taxpayers’ control.
To solve this challenge, the National Treasury has proposed a staggered system that separates taxpayers into different filing periods based on their income status. Under the new arrangement, nil filers will submit their returns immediately after December, while salary earners will file between January and April. Business owners and other taxpayers engaged in commercial activity will continue using the June 30 deadline.
Mbadi explained that the aim is to reduce congestion and avoid penalties caused by system overload during peak filing periods. The announcement comes shortly after the Kenya Revenue Authority replaced the Nil Returns system with the “PIN with No Obligation” framework for individuals without taxable income.
The reforms are expected to improve efficiency and ensure smoother filing experiences for taxpayers across the country ahead of future deadlines. We will continue monitoring implementation to ensure compliance and better service delivery nationwide going forward effectively always.