How to file taxes in Kenya: A simple guide.

HOW TO FILE TAXES IN KENYA - SIMPLIFIED GUIDE FOR INDIVIDUALS AND COMPANIES

June 12, 2025

Give to Caesar what Belongs to Caesar – or in this case, give to the KRA (Kenya Revenue Authority) what belongs to the taxman.

This comprehensive guide simplifies how to file taxes in Kenya through the KRA iTax portal, focusing on individuals and companies.

Whether you are a salaried employee, self-employed professional, or a business owner, you need to file taxes in order to comply with KRA tax filing requirements.

Introduction - Brief History of Taxation in Kenya

Taxation has a long history worldwide, and in Kenya, it began during the colonial era with hut and poll taxes.

Today, filing taxes in Kenya has been streamlined significantly, especially since the launch of the KRA iTax portal in 2013, which allows taxpayers to file taxes and make payments online.

Obtaining and using a valid KRA PIN is essential for all taxpayers in Kenya. This PIN is your key to accessing the KRA iTax portal and fulfilling your legal obligation to file income tax returns annually.

PART A: Personal Tax Filing in Kenya

Every Kenyan with a valid KRA PIN must file taxes through the KRA iTax portal.

This requirement applies even if no income was earned during the tax year.

a) Filing Nil Returns on KRA iTax

If you earned no income in the year, you must file a nil return via the KRA iTax system.

Who should file a nil return:

Unemployed individuals with a valid KRA PIN
Students with no taxable income
Anyone with no reportable earnings

Steps to file a nil return on KRA iTax:

Log in to your KRA ITAX Account
Navigate to “Returns” and select “File Nil Return”
Select Income Tax – Resident Individual
Choose the applicable tax period
Submit and download the acknowledgment receipt

Deadline: 30th June annually

Penalty for late filing: Ksh 2,000

b) Filing Employment Income Tax Returns with P9 Form

Salaried employees in Kenya file their income tax returns annually using the P9 form issued by their employer.

Who should file:

Individuals receiving salary income with a P9 form from their employer

Required for filing:

Valid KRA PIN and iTax portal access
P9 Form – Obtained from your employer
Personal identification (National ID or Passport)
Relief certificates (NHIF, insurance, mortgage)
Bank details for refunds

Steps to file employment income tax return:

Collect your P9 form from your employer
Log in to the KRA iTax portal
Select Income Tax – Resident Individual
Choose filing mode: online or Excel (IT1)
Input income, benefits, PAYE, reliefs, and deductions
Upload the P9 form if using Excel, then validate and submit
Download your filing acknowledgment receipt

Deadline: 30th June

Penalty: Ksh 2,000 for late filing

c) Filing as a Self-Employed Individual in Kenya

Self-employed taxpayers, including freelancers and sole proprietors, must file their income tax returns on the KRA iTax portal.

Who should file:

Freelancers, consultants, sole proprietors, and business owners with a valid KRA PIN

Requirements:

Business income and expense records
Bank statements and receipts
Withholding tax certificates (if applicable)

Steps to file self-employed income tax returns:

Log into your KRA iTax account
Select Income Tax – Resident Individual
Declare all business income and allowable expenses
Review the calculated net income and tax due (Itax automatically computes this)
Validate and submit your return
Generate payment slip if tax payment is required

Deadline: 30th June

Penalty: Ksh 2,000 for late filing

PART B: Corporate Tax Filing in Kenya

Companies operating in Kenya must file their corporate income tax returns using the KRA iTax portal.

Who must file:

Resident companies,
NGOs with income-generating activities,
Trusts and cooperatives
Partnerships

Tax rates:

Resident companies: 30%
Non-resident companies with Permanent Establishment in Kenya: 37.5%

Corporate tax filing steps:

Log into KRA iTax
Select Income Tax – Company Return (IT2)
Enter Gross Revenue, Expenses, Capital Deductions, and any Tax Instalments paid
Validate and submit the return
Generate and pay the tax payment slip via approved banks

Deadline: 6 months after financial year-end

Penalty: 5% of tax due or Ksh 20,000, whichever is higher

FAQs About Filing Taxes in Kenya

1. What if I had multiple employers during the year?

If you worked for multiple employers, you must consolidate all P9 forms before filing your annual tax return on KRA iTax.

Steps:

Obtain a P9 form from each employer.
Combine Income, Benefits, and PAYE data from all forms.
Log in to KRA iTax.
Select Income Tax – Resident Individual.
Enter the combined totals or upload an Excel IT1 form.
Submit and download your receipt.

2. What if I earned freelance, business, or rental income in addition to my Employment Income?

You must declare all income sources, including freelance work and rental income, on your KRA iTax individual return.

Steps:

Gather records of all Income and Expenses.
Log into KRA iTax and navigate to Income Tax – Resident Individual.
Fill out employment and other income sections accordingly.
Deduct allowable expenses and submit your return.
Pay any tax due before the deadline.

3. What’s the penalty for forgetting to file my returns?

For Individuals:

Ksh 2,000 per year for late filing.

For Companies:

A penalty of 5% of the tax due or Ksh 20,000, whichever is higher, is applicable.
Note: Unpaid tax balances also accrue interest until fully paid.

4. Do I need to file a return if my employer already deducts PAYE?

YES.

It is every taxpayer’s responsibility to file an annual tax return by 30th June every year, even if PAYE is deducted monthly by your employer.
Filing your taxes ensures you remain compliant and can claim tax refunds, such as overpaid PAYE.

5. Do companies still file returns if they have made a loss?

YES.

Companies must file a tax return even if no profit was made.
Declaring the loss is important as it can be carried forward for future tax relief for up to 10 years.

6. When is the tax filing period?

For Individuals: Returns must be filed between 1st January and 30th June for the previous year’s income.
For Companies: Returns must be filed within six months after the end of the company’s financial year.

7. Can I file taxes in Kenya if I live abroad?

YES, if:

You are a Kenyan resident with income sourced in Kenya.
You have investments, businesses, or rental income generated in Kenya.

8. Can I amend my return after submission?

YES.

You can file an amended return via the KRA iTax portal.
To do this: Log in, Go to Returns, then select File Amended Return.
This process is allowable within 5 years of the original filing date

9. I’m new to taxes – how do I start?

If you’re unsure how to file taxes in Kenya, start by confirming your KRA PIN is active, gather your income info (like a P9 or business records)
Log into the iTax portal to begin your return.

Summary Table of Tax Filing in Kenya

Type of Taxpayer	Return Type	Platform	Deadline	Penalty for Late Filing
Unemployed/Student	Nil Return	ITAX	30th June	Ksh 2,000
Salaried Employee	Employment Return (IT1)	ITAX	30th June	Ksh 2,000
Self-Employed	Income Return (IT1)	ITAX	30th June	Ksh 2,000
Company	Company Return (IT2)	ITAX	6 Months after year-end	5% of tax Due or Ksh 20,000 or whichever is higher

Conclusion: Filing Your Taxes Using KRA iTax

Once you understand how to file taxes in Kenya, using the KRA iTax portal becomes straightforward.

Whether you are filing a nil return, employment income tax, self-employed tax return, or corporate tax return, meeting deadlines and maintaining proper records is key to avoiding penalties.

Remember to use your valid KRA PIN to access the KRA iTax portal and fulfill your tax obligations.

Filing taxes in Kenya doesn’t have to be hard – follow these steps to file through KRA iTax.

Final Note: Take Advantage of Kenya’s Tax Amnesty Program (2024 – 2025)

The KRA tax amnesty program 2024–2025 offers penalty waivers and interest relief on taxes owed up to 31 December 2023.

This is a great opportunity for individuals and companies with outstanding tax obligations to become compliant.

The deadline to apply and file under this program is 30th June 2025.

Want to learn more? Read our full guide on the Tax Amnesty Program 2024–2025.

Need Help Filing Taxes in Kenya?

Mugo & Co. offers expert support for all tax filing needs in Kenya, including assistance with the KRA iTax portal, employment returns, self-employment taxes, corporate filings, and navigating the tax amnesty program.

Book a consultation today to file with confidence and avoid penalties.

Disclaimer

This article is for informational purposes only and does not constitute professional tax advice. Consult a qualified tax expert or contact Mugo & Co. for personalized assistance.

Sources