Categories: Business

KRA Unveils Simplified 8-Step Guide for Salaried Kenyans to File 2025 Returns

The Kenya Revenue Authority (KRA) has issued an urgent advisory to millions of formally employed Kenyans, outlining a simplified eight-step procedure to file their annual income tax returns for the 2025 year of income

The taxman has introduced a “Simplified Return” feature on the iTax portal, specifically designed to eliminate the need for complex Excel sheets for individuals whose only source of income is employment.

The 8-Step Filing Process

To comply with the June 30, 2026, deadline, salaried employees are advised to follow these official steps:

  1. Log in to iTax: Access the portal using your KRA PIN (or National ID) and password.
  2. Select Return Type: Navigate to the ‘Returns’ menu and select ‘ITR for Employment Income Only.’
  3. Confirm Period: Verify the auto-populated return period (01/01/2025 to 31/12/2025) and click ‘Next.’
  4. Verify Gross Income: Confirm your gross employment income in Section F, cross-checking with your P9 form.
  5. Confirm PAYE: Verify the Pay As You Earn (PAYE) tax already deducted by your employer in Section M.
  6. Review Statutory Deductions: Ensure deductions for pension, affordable housing levy (AHL), and the social health insurance fund (SHIF) are accurately reflected in Section T.
  7. Submit Return: Review the tax computation summary and click ‘Submit.’
  8. Download Receipt: Save the generated acknowledgement receipt for your records.

KRA Commissioner General Humphrey Wattanga noted that the 2026 filing cycle features enhanced data integration, allowing the system to pre-fill details based on employer submissions. However, taxpayers are warned that starting this year, KRA is validating all declared figures against eTIMS invoices and withholding tax records to curb discrepancies.

While the final deadline remains June 30, KRA has also introduced a phased filing approach this year, sending personalized SMS and email notifications to taxpayers to manage system traffic and reduce last-minute congestion.

Failure to file by the deadline attracts a Ksh 2,000 penalty or 5% of the tax due, whichever is higher. Taxpayers are also reminded that false declarations may result in heavier fines of up to 25% of the tax involved

For those with no income to declare, the taxman clarified that NIL returns are still mandatory and can now be filed via the KRA M-Service app or the newly launched WhatsApp filing service.

Marion Nyatichi

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