Guide · 7 min read
How to File Nil Returns on KRA iTax Kenya 2026 - A Step-by-Step Guide | how to file nil returns 2026
If nothing happened in your business this month, you still owe KRA one thing: a nil return. This guide walks you through the exact clicks for both monthly VAT nil returns and annual income tax nil returns, and what has changed in 2026 - including the new No Obligation PIN status that may end the annual filing for students and the unemployed.
Explain Like I'm 5: What is a Nil Return?
A nil return is KRA's way of calling attendance. Every filing period, you must answer the roll call - even if you had zero sales, zero purchases, and zero tax. You answer with a form full of 0.00.
Silence is not an option. If you skip the roll call, KRA fines you KES 10,000 per month for VAT returns, whether or not you owed any tax.
Bottom line: A nil return = “I showed up. Nothing to report.”
Monthly VAT Nil Return: The Exact Clicks (5 Minutes)
This is the most common nil return in Kenya because VAT is filed every month. Do these steps once a month, before the 20th.
Log into itax.kra.go.ke
Enter your KRA PIN and password. Use Google Chrome. If the portal hangs or shows an error, see our iTax portal troubleshooting guide or check the iTax traffic update page for congestion timing.
Go to Returns → VAT Returns
From the dashboard menu, click 'Returns' then select 'VAT Returns'. You'll see your 'Due' and 'Overdue' months.
Select the filing month
Click the month you are filing. The VAT return form opens with numbered boxes. Most will already read KES 0.00.
Confirm every box reads 0.00
Check Box 1 (Taxable Sales at 16%), Box 2 (Zero-Rated Sales), Box 3 (Exempt Sales), Box 7 (Input VAT), Box 14 (VAT Payable). If iTax pre-fills anything, correct it to 0.00 only if the number is genuinely wrong.
Tick the declaration and click Submit
Check "I confirm the information is true and correct", then click Submit. You get a confirmation receipt with a submission ID. Screenshot it or save the PDF - that is your proof.
Pro tip for 2026: file between the 1st and 10th. iTax is fastest early in the month. From the 15th to the 20th, portal traffic spikes and the system slows or drops - that is when congestion complaints peak (see our iTax traffic update guide).
Annual Income Tax Nil Return: Students, the Unemployed & Dormant PINs
Most people searching “how to file nil returns 2026” are not VAT-registered businesses. They are individuals - students, the unemployed, or people whose PIN was issued for a one-off transaction. If that's you, you file an annual income tax nil return.
- Deadline: 30 June each year (the 2025 return was due 30 June 2026)
- Penalty: KES 2,000 for individuals filing late - even for nil returns. Unfiled returns also block your Tax Compliance Certificate
- Where: itax.kra.go.ke → Returns → File Nil Return → Income Tax – Resident Individual → submit → download the acknowledgement receipt
- Watch out: don't file nil if you actually earned income. Employees, freelancers, landlords, and businesses must file a normal return. Habitual nil filing while earning is a compliance red flag
New in 2026 - “No Obligation” PIN status: KRA introduced PINs with a No Obligation status for specific categories (notably students and the unemployed), which may end the mandatory annual nil return for qualifying PINs. Check iTax → Taxpayer Dashboard → Obligations to see your status - and confirm with KRA before assuming you're exempt.
What Non-Filing Actually Costs You in 2026
| Return type | Deadline | Late penalty |
|---|---|---|
| Monthly VAT nil return | 20th of the following month | KES 10,000 |
| Income tax nil return (individual) | 30 June annually | KES 2,000 |
| Turnover tax nil return | 20th of the following month | KES 10,000 |
| Blocked TCC | While any return is missing | Cannot tender, lose contracts |
Penalties accumulate per month and per return type. Three missed VAT months = KES 30,000. For the full penalty reference, see our KRA VAT penalties reference table.
Common Nil Return Mistakes That Cost KES 10,000+
✗ "I had no sales so I did not file."
✓ The #1 mistake. KRA requires a return every month regardless of activity. A nil return takes 5 minutes.
✗ "I will file two months together later."
✓ Each month is a separate filing period. Missing January and filing both in March means two KES 10,000 penalties.
✗ "The nil return has no Submit button."
✓ Known iTax bug. Switch to Chrome, enable pop-ups for itax.kra.go.ke, or try Incognito Mode.
✗ "I filed a nil return but still got a penalty."
✓ Check the filing date. After the 20th the penalty is automatic. Also confirm you clicked Submit - saving as draft does not count.
Already Missed Nil Returns? The 2026 Amnesty Wipes the Penalties
If you've missed nil returns and accumulated penalties, don't despair. The 2026 KRA tax amnesty (Voluntary Tax Disclosure Programme) waives 100% of penalties and interest - you only pay the principal tax, which for nil returns is KES 0.
That means missed nil returns can often be cleared for free via the amnesty route. The trade-off: it only works if you disclose before KRA finds you. See our full KRA Tax Amnesty 2026 guide and the nil returns + amnesty deep-dive.
Stop worrying about nil returns. Let us file them for you.
KES 3,500/month. We file on the 17th - before the iTax portal slows down. Nil returns, normal returns, penalty waivers, and amnesty applications.
Frequently Asked Questions
Do I need to file nil returns if I made no sales?▼
Can I file a nil return on my phone?▼
What if I file a nil return by mistake but actually had sales?▼
Does the tax amnesty apply to nil returns?▼
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