Treasury Revives Nil Returns Filing Months After KRA Scrapped Requirement Under New Tax Plan
Treasury Cabinet Secretary John Mbadi has announced a major shake-up in Kenya’s tax filing system, revealing that taxpayers who submit nil returns will once again be required to file annually under a new staggered returns framework designed to ease pressure on the tax system.
The announcement comes just weeks after the Kenya Revenue Authority (KRA) introduced the “PIN with No Obligation” (PWO) category, a move that had effectively eliminated the need for certain taxpayers to file nil returns.
Speaking during an X Space discussion with Kenyans on Thursday, June 4, Treasury CS John Mbadi said the government is restructuring the country’s annual tax return filing calendar in a bid to reduce congestion on the iTax platform and improve compliance.
Under the proposed changes, taxpayers who ordinarily file nil returns will be expected to submit them immediately after December each year. Salaried employees will then file their returns between January and April, while business owners and other taxpayers engaged in commercial activities will continue observing the traditional June 30 deadline.
Mbadi said the reforms were informed by recurring challenges experienced every year as millions of Kenyans rush to meet the June 30 filing deadline.
“For many years, Kenya has operated with a single tax filing deadline of June 30. What happens is that many taxpayers wait until the last minute to file their returns, causing congestion on the system,” Mbadi explained.
“When the system experiences failures during those peak periods, taxpayers end up being penalised despite the delays being beyond their control. We have therefore decided to stagger the filing process,” he added.
According to the CS, nil return filers will be the first category to submit returns shortly after the end of the calendar year, followed by salary earners, while businesses will retain the June filing timeline.
The Treasury believes the staggered approach will reduce pressure on KRA’s digital infrastructure, minimise technical disruptions, and improve overall tax compliance.
The announcement has, however, raised questions among taxpayers after KRA recently unveiled the “PIN with No Obligation” status. The new category was introduced to cater for individuals who do not earn taxable income and therefore have no tax obligations.
At the time, KRA stated that the enhanced iTax system would allow both resident and non-resident individual taxpayers to obtain a PIN classified as having no tax obligation, effectively removing the requirement to file annual nil returns.
The latest remarks by Mbadi suggest the government may be reviewing how nil filers are handled under the new tax administration framework, although further clarification is expected on how the staggered filing model will interact with the recently introduced PWO category.
The proposed changes form part of broader efforts by the National Treasury to modernise tax administration, improve service delivery, and address long-standing complaints over system outages and last-minute filing challenges experienced by taxpayers every year.
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