Why Every Kenyan Must File Their Tax Returns by June 30th, or Face Penalties

In Kenya, filing your annual tax returns is not optional—it’s a legal requirement for all taxpayers, whether you have income to declare or not. As the deadline of June 30th approaches, it’s important to understand what the law says and the consequences of non-compliance.

What the Law Says

Under the Income Tax Act (Cap 470) of the Laws of Kenya, every individual with a Personal Identification Number (PIN) registered with the Kenya Revenue Authority (KRA) is required to file annual income tax returns. This applies to:

• Employed individuals
• Self-employed professionals
• Business owners
• Individuals with rental income
• Even those with no income (they must file a Nil return)

Specifically, Section 52B of the Income Tax Act requires individuals to furnish self-assessment returns not later than the last day of the sixth month following the end of the year of income—June 30th, assuming a calendar year basis.

Why You Must File — Even If You Have No Income

If you were not employed or had no taxable income in the year, you are still required to file a Nil return. This is crucial for keeping your KRA PIN active and maintaining a clean tax record.

Failure to file returns attracts a penalty of KSh 2,000 for individuals, as outlined in the Tax Procedures Act, 2015 (Section 83(2)), which may increase with time and impact your ability to access government services or clear with institutions.

Consequences of Late or Non-Filing

• Automatic penalties imposed by KRA
• Inability to obtain a Tax Compliance Certificate (TCC)
• Accrued interest on unpaid taxes
• Complications in applying for jobs, tenders, loans, or government services

How to File Your Returns

Filing is done through the KRA iTax portal (https://itax.kra.go.ke). You’ll need your KRA PIN and password. Employees will typically file using their P9 form, while others must fill in details based on their business or rental income.

Need Help Filing?

If you're uncertain about how to proceed—whether you're missing your P9 form, have unique income circumstances, or need general guidance—it’s advisable to seek support early. You can contact a licensed tax consultant or reach out directly to the KRA helpdesk.

Don’t wait until the last minute. File your returns now, stay compliant, and avoid unnecessary penalties.

For your HR & Business support needs, reach out to our team of experts @ consult@aurumconsultants.co.ke

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