KRA Nil Return SMS Notices Trigger Fresh Compliance Crackdown
Thousands of taxpayers who previously filed nil returns are now receiving unexpected alerts as KRA Nil Return SMS Notices spark a new compliance review targeting undeclared income.
The Kenya Revenue Authority has intensified scrutiny on select nil income tax filers after detecting income activity linked to their Personal Identification Numbers (PINs).
Messages circulated online reveal that some individuals who declared zero income for 2024 appear to have generated earnings in 2025 based on eTIMS transmissions.
Which Directive Did KRA Issue?
Affected taxpayers were instructed to log into the iTax platform and settle any outstanding obligations. According to the SMS sent by KRA:
“Records indicate that while you filed a nil income tax return for 2024, you earned income in 2025 as evidenced by your eTIMS transmissions. Consequently, your pre-populated 2025 income tax return is ready for filing. Please log in to iTax to file your return and pay any tax due. For assistance, call 0711 0999 999,”
The authority clarified that pre-populated 2025 tax forms have already been generated for flagged individuals.
How KRA Identified the Mismatch
KRA explained that it cross-checks eTIMS data and employer-submitted records against the most recent filed returns. When the system detects income activity inconsistent with a previously filed nil return, it flags the account automatically.
Once flagged, the iTax system generates a pre-filled return to prompt review and payment.
This strategy forms part of KRA’s broader efforts to strengthen compliance and plug revenue leakages.
How Is KRA Enhancing Compliance?
Earlier, the government’s principal revenue collector announced tighter validation measures aimed at improving tax reporting accuracy.
In a notice dated November 10, 2025, KRA stated:
“KRA would like to notify the public, stakeholders, and taxpayers that it will start verifying income and expenses reported on both personal and non-individual income tax returns on January 1, 2026. Subject to the exceptions allowed by Section 23A of the Tax Procedures Act, every declared income and expense must be accompanied by a legitimate electronic tax invoice that has been accurately supplied with the buyer’s PIN, if applicable,”
The verification exercise will officially begin on January 1, 2026.
Under the new framework, every declared income or expense must be backed by a valid electronic tax invoice.
Nil Return Filing Option Reintroduced
After briefly suspending the nil return option — a move that left many taxpayers confused — KRA reinstated the feature earlier this month.
However, the taxman warned that stricter system validations are now in place.
The restored nil filing option will only apply to 2025 income tax returns submitted after March 31, 2026, once the enhanced iTax checks are fully operational.
Over 392,000 Tax Evaders Flagged
KRA has revealed that more than 392,000 tax evaders have been identified within its system.
The latest SMS alerts appear to signal a determined push to expand compliance before the June 2026 income tax return deadline.
Tax experts warn that ignoring such notices could attract penalties, interest charges, or further investigations.
What Taxpayers Should Do Now
Anyone who receives the SMS is advised to immediately:
- Log into the iTax portal
- Review the pre-populated 2025 return
- Confirm income details
- Pay any tax due
With data matching becoming more automated, discrepancies are increasingly difficult to overlook.
As KRA tightens enforcement, the message is clear — nil return filings that do not match actual income activity will not go unnoticed.
Also Read: Govt Announces New Rules Affecting All SACCOs
KRA Nil Return SMS Notices Trigger Fresh Compliance Crackdown
