The Kenya Revenue Authority (KRA) has reinstated the option for taxpayers to file Nil returns, ending weeks of uncertainty for thousands of Kenyans who were left unable to submit returns after the feature was removed from the iTax system. The decision followed sustained public criticism and stakeholder engagement, with Business Daily journalist Constant Munda reporting that pressure from taxpayers played a key role in the reversal.
Nil returns apply to registered taxpayers who earn no taxable income within a given year. This group includes unemployed individuals, students, dormant businesses, and informal workers. When the option disappeared from iTax, many found themselves locked out of compliance despite having nothing to declare.
For some, the experience was frustrating and confusing. Online discussions captured stories of users logging into iTax only to realize there was no clear path to submit returns. Others described repeated login failures, missing OTP codes, or system errors that made an already stressful process worse. For young people and first-time filers, the situation reinforced a familiar feeling: that tax systems often assume economic stability that many do not have.
Why the Change Sparked Backlash
KRA’s initial move appeared to rest on the assumption that holding a PIN automatically meant economic activity. However, this view clashed with lived realities. Kenya’s labour market remains highly fluid, with many people moving between short-term work, informal income, and unemployment.
As the filing deadline approached, anxiety grew. Some taxpayers feared penalties or future complications, especially those who needed tax compliance certificates for job applications, loans, or government services. Others joked darkly online about having to seek help from cyber cafes just to understand what the system now required.
This collective frustration reflected a deeper issue. For many Kenyans, tax compliance is not just about payment but about navigating systems that often feel opaque, rigid, and unforgiving.
Why Nil Returns Were Suspended
KRA had temporarily removed the Nil returns option as part of a broader effort to validate taxpayer data and reduce misuse of zero-income declarations. With expanded digital tools, the authority has been cross-checking tax filings against information from invoicing systems, withholding tax records, and customs data.
The aim was to identify cases where taxpayers declared nil income despite visible economic activity. However, the execution of the change, without clear public communication, left many compliant taxpayers caught in the middle.
A Broader Shift in Tax Administration
KRA is increasingly relying on digital integration and data validation to expand the tax base and improve enforcement. While this approach promises efficiency, it also raises questions about accessibility, communication, and fairness.
The reinstatement of Nil returns shows that public response still matters. Even as tax systems become more automated, trust remains human.
