How to File KRA Income Tax Returns in Kenya | Comprehensive Guide 2025

Filing Resident Individual Income Tax Returns (January – December 2025)

This guide provides a step-by-step process for filing income tax returns online in Kenya in 2025. In this guide, you will be taught on how to file different forms of returns such as:

Filing Nil Returns

ITR for Employment Income Only

 Please note that the content may be updated to reflect changes in tax laws or policies, and in case of discrepancies, the provisions of the tax law take precedence.

What Is Filing Tax Returns?

Filing tax returns involves self-declaring all income earned within a specific year.

• Deadline: File by 30th June (the last day of the 6th month following the end of the income year).

Documents Needed to File Returns

1. KRA Personal Identification Number (PIN) and iTax password.
2. P9 Form from your employer.
3. Mortgage interest certificate (if applicable).
4. Life/Health/Education insurance certificates (if claiming insurance relief).
5. NHIF membership number and total annual premiums paid.
6. Exemption certificate for Persons with Disabilities (PWDs).

Penalties for Not Filing Tax Returns

Failure to file by 30th June attracts penalties:

• A KES 2,000 penalty for late submission.
• If the return shows tax payable (e.g., KES 1 or more), the penalty is 5% of the tax payable or KES 2,000, whichever is higher.

Step-by-Step Guide to Filing Returns (Employment Income Only)

Step 1: Log in to iTax

Go to iTax and log in using your KRA PIN and password.

Step 2: Select the Appropriate Return

From the dropdown menu, select ‘Returns’ and choose ‘ITR for Employment Income Only.’

Step 3: Enter Return Period

• Input the return period start date as 01/01/YYYY (e.g., 01/01/2022).
• The system will auto-populate the end date as 31/12/YYYY.
• If you received your PIN during the year, enter the date you obtained it as the start date.

Step 4: Confirm Employment Income

Select ‘Yes’ for the question ‘Do you have Employment Income?’ and click ‘Next.’

Filling Return Sections

Section A: Basic Information

• Mortgage Declaration:
• If you have a mortgage, select ‘Yes.’
• Fill out the relevant details in the ‘Computation of Mortgage Relief’ section and click ‘Add.’

• Insurance Policy:
• Applicable to life, health, or education insurance policies with a term of 10+ years (NHIF premiums are included from January 2022).
• Enter the necessary details and click ‘Add.’

Section F: Employment Income

This section is auto-populated based on your P9 Form. Confirm that the details match your P9.

Section M: PAYE Deductions

This section contains PAYE deductions made by your employer. Verify the details with your P9 Form.

Section T: Tax Computation

1. Calculate the tax due using the PAYE tax bands:

   • First KES 288,000: 10%
   • Next KES 100,000 (KES 288,001 – 388,000): 25%
   • Income above KES 388,000: 30%
   • Personal relief: KES 28,800 annually (KES 2,400/month).

2. Example:

   • Total taxable income: KES 2,793,576.10
   • Tax computation:
     • First KES 288,000 at 10% = KES 28,800
     • Next KES 100,000 at 25% = KES 25,000
     • Remaining KES 2,405,576.10 at 30% = KES 721,672.83
     • Total tax: KES 775,472.83
   • Less relief (e.g., personal relief and insurance relief): KES 60,405
   • PAYE deducted: KES 745,495.20
   • Final tax due: KES -30,427.37 (refund).

Final Steps

1. Review and Confirm Details: Ensure all details are correct.
2. Submit the Return: Click ‘Submit’ to file the return.
3. Acknowledgment: After submission, you will receive an acknowledgment receipt.

Contact Information

For inquiries, contact:

• Phone: +254 (020) 4 999 999 / +254 (0711) 099 999
• Email: callcentre@kra.go.ke

Stay compliant, avoid penalties, and file your returns on time!