This is the End of “Simple” Nil Returns

The Kenya Revenue Authority (KRA) recently reinstated the Nil return filing option, but with a major catch: automated validation checks. For the modern Kenyan business owner, this means the iTax portal is no longer just a form-filling site; it is a data-matching engine.

Before you rush to hit Submit, you need to know that this isn’t the same system we used last year. Following the brief suspension in January, KRA hasn’t just brought the feature back, they’ve upgraded it with a sophisticated tech-driven “backbone” that makes “blind filing” a thing of the past.

Here is what every Kenyan professional, freelancer, and business owner needs to understand about the 2026 Tax Season.

1. The End of “Blind Filing”

In previous years, filing a Nil return was a simple administrative box to tick. Today, it is a data-matching exercise. KRA’s new Income and Expenditure Verification program now cross-references your PIN with:

• eTIMS: Every invoice issued to your PIN is already in the system.

• Withholding Tax: That 5% professional fee you thought was “final”? KRA sees it as an advance payment and expects to see the corresponding income declared.

• Third-Party Data: The engine now scans data from banks, Safaricom (M-Pesa), and even NTSA records.

2. The “Instant Rejection” Feature

The system has moved from Declaration to Validation. If you attempt to file a Nil return while the system has records of income (like an eTIMS-generated expense or a withholding certificate), the portal will instantly reject your submission. You will be prompted to file a full “Income Tax Individual” return instead.

3. Why This Matters for the “Side-Hustle” Economy

KRA estimates that over 2.5 million taxpayers have income levels equivalent to those on formal payrolls but remain outside the tax bracket. By integrating the eTIMS validation framework, the taxman is effectively closing the gap between your lifestyle (expenditure) and your filings (income).

• April 1, 2026: The full automated validation kicks in for the 2025 year of income.

• June 30, 2026: The hard deadline.

• The Penalty: A KES 2,000 fine is now generated automatically by the system the second the clock strikes midnight on July 1st.

The Bottom Line

Compliance is no longer about what you say; it’s about what the data shows or proves. If you’ve been active in business, consultancy, or even high-volume personal transactions, a Nil return might be a “red flag” for an audit.

How Pergamon Helps Businesses Stay Compliant

At Pergamon Group, we provide EasyTax eTIMS Solutions to help businesses ensure their digital footprint remains accurate. They include:

• EasyTax ETR devices, which are all Type A Incotex Devices.

• EasyTax Android Application, easily downloadable and installed on Android devices, including the TrendIt S680, which allows receipt printing.

• EasyTax eTIMS API Integration: This is for businesses with existing accounting or billing systems.

• EasyFuel Pro Solution: for fuel station compliance. This allows semi-automated and manual fuel stations to achieve compliance at a competitive price and in a time-sensitive manner. Schedule a demo here.

Our Advice? Don’t wait until June. Log in to iTax now, check your “Consult Return” tab to see what withholding certificates are already there, and reconcile your records with your eTIMS invoices.