KRA Removes Nil Returns, Introduces Simpler Option for Those Without Income

The Kenya Revenue Authority (KRA) has removed the requirement for filing Nil Returns and introduced a new category called “PIN with No Obligation” (PWO) to make things easier for people who do not earn taxable income.

Under this new system, individuals registered as PWO — such as students or anyone who only needs a KRA PIN to access services like higher education loans — will no longer be required to file annual tax returns. This change is expected to reduce the burden on many Kenyans who previously had to file returns even when they had no income.

“This is an initiative aimed at enhancing the integrity of the taxpayer register to facilitate a certain category of taxpayers who may not be engaged in gainful and taxable activities but still require a PIN,” KRA explained.

Kenyans who qualify for this category can register through the iTax portal using only their national identity card, making the process simple and accessible.

However, KRA warned that anyone registered under PWO who later starts earning income must update their details and begin filing tax returns. Failure to do this will lead to penalties. KRA said affected individuals risk paying Ksh2,000 for individuals or five percent of tax due, whichever is higher if they do not comply.

The authority also noted that it is still working on a way for existing PIN holders to switch to the new PWO category. The changes come as KRA continues to push for better tax compliance ahead of the June 30, 2026 deadline, while also making the system easier for those who do not have taxable income.