Introduction: Understanding KRA iTax
The KRA iTax portal is Kenya’s official online platform for managing tax obligations. It simplifies the process of filing tax returns, paying taxes, and checking compliance status. To use it, you must have a KRA PIN, which is your unique tax identifier. Without it, you cannot access the portal or file taxes.
Who Needs to File KRA Returns?
All individuals with a valid KRA PIN must file returns annually — whether or not they earned income. This includes:
- Employed persons
- Self-employed individuals
- Persons with rental or investment income
- Even unemployed persons (Nil Returns)
Table 1: Who Must File Returns
| Category | Requirement |
|---|---|
| Employed persons | Must file via Employment Income Only (ITR) option |
| Business owners | Must file comprehensive return (covering all income sources) |
| Unemployed (no income) | Must file a Nil Return |
| Students with a PIN | Must file Nil Returns until employed |
Documents & Information Required
Before logging into the portal, prepare these documents:
Table 2: Essential Documents for Filing Returns
| Document | Purpose |
|---|---|
| KRA PIN + Password | Login to KRA iTax portal |
| Employer’s P9 form | Details salary, benefits, PAYE deducted |
| Insurance certificates | Claim insurance relief |
| Mortgage certificates | Claim mortgage relief |
| NHIF contributions | Additional relief considerations |
| Disability exemption certificate | Claim disability tax relief |
Penalties for Late or Non-Filing
Failure to file your return attracts penalties.
Table 3: Penalties for Non-Compliance
| Situation | Penalty |
|---|---|
| Nil return not filed | KES 2,000 |
| Return filed late (tax payable) | 5% of tax due or KES 2,000 (whichever is higher) |
| Non-filing entirely | Risk of cumulative penalties, enforcement, and non-compliance certificate |
Step-by-Step Guide to Filing Returns
The Employment Income Only option is simple.
- Login to the KRA iTax portal
2. Select Returns → File Returns → Income Tax Resident (Employment Income Only).
3. Enter the return period (1st Jan – 31st Dec).
4. Enter employment income details (verify with P9).
5. Confirm PAYE deducted matches employer records.
6. Add any reliefs (insurance, mortgage, disability).
7. Compute tax (auto-done by portal).
8. Submit and download Acknowledgment Receipt.
Tax Bands, Reliefs & Computation
Table 4: Individual Income Tax Bands (Kenya)
| Tax Band (KES) | Rate |
|---|---|
| 0 – 288,000 | 10% |
| 288,001 – 388,000 | 25% |
| Above 388,000 | 30% |
Reliefs available:
- Personal relief: KES 28,800 annually
- Insurance relief: 15% of premiums (up to KES 60,000 per year)
- Mortgage interest: Up to KES 300,000 annually
- Disability exemption: Full exemption for certified persons
Nil Returns Explained
If you had no income during the year, file a Nil Return:
- Log in → File Returns → Nil Return.
- Select tax period.
- Submit.
- Download receipt.
This avoids penalties and keeps your compliance certificate valid.
Common Mistakes to Avoid
- Submitting late.
- Not comparing PAYE with P9.
- Forgetting to claim insurance or mortgage relief.
- Using wrong return type (full return vs employment only).
After Submission: What Next?
- Download and save the Acknowledgment Receipt.
- Pay outstanding tax (if any) via bank or M-Pesa.
- If mistakes occur, file an Amended Return.
Benefits of Using the Employment Income Only Option
- Fast and simplified.
- Auto-populated details minimize errors.
- Less paperwork compared to full returns.
- Designed specifically for salaried individuals.
Scenario Examples
Example 1:
- Salary: 500,000 KES
- PAYE deducted: 100,000 KES
- Tax due after computation: 58,600 KES
- Since PAYE > tax due → refund or carry-forward credit.
Example 2:
- Salary: 700,000 KES
- Insurance: 20,000 KES
- Mortgage: 50,000 KES
- PAYE deducted: 200,000 KES
- Tax reduced by reliefs, possible refund depending on deductions.
Tips for Using the KRA Portal Smoothly
- Use official site: itax.kra.go.ke.
- Ensure good internet connection.
- Enable macros for Excel forms.
- Always confirm employer issues your P9 on time.
Important Deadlines
- Tax year: Jan 1 – Dec 31.
- Filing deadline: June 30th of following year.
- Late filings attract penalties (see Table 3).
Comparison with Other Returns
| Return Type | When to Use |
|---|---|
| Employment Income Only (ITR) | Salaried individuals with no other income |
| Nil Return | Unemployed, students, no income |
| Full Individual ITR | People with rental, business, investment, or mixed income |
Checklist Before Filing
Table 5: Pre-Filing Checklist
| ✅ Item |
|---|
| KRA PIN + Password ready |
| P9 form obtained from employer |
| Insurance/mortgage certificates prepared |
| Reliefs confirmed (personal, insurance, mortgage, NHIF) |
| Correct tax period selected |
| Deadline awareness (June 30) |
| Download acknowledgment after submission |
FAQs
Q1. What if my employer delays my P9?
File as soon as you receive it. Employers are legally required to provide it.
Q2. Can I amend my return after filing?
Yes. Use the Amended Return option on iTax.
Q3. What if I didn’t earn income?
File a Nil Return to avoid penalties.
Q4. What happens if I miss the deadline?
You incur penalties as outlined in Table 3.
Why Compliance Matters
- Tax compliance certificate needed for jobs, tenders, loans.
- Avoid penalties and interest.
- Good tax records improve financial credibility.
Conclusion
The KRA iTax Employment Income Only Return is the simplest way for salaried Kenyans to meet their tax obligations. By preparing early, gathering your P9 and relief documents, and filing before June 30, you avoid penalties and remain tax compliant.
