The Kenya Revenue Authority (KRA) has intensified its compliance campaign by outlining a clear eight-step process for employees required to file annual income tax returns through the iTax system.
Under Kenyan tax law, all individuals with a KRA PIN, including those whose Pay As You Earn (PAYE) tax has been fully deducted by employers, must file annual returns. The filing obligation applies even where no additional tax is due.
KRA says the structured guide is intended to reduce filing errors, enhance compliance, and streamline the experience for salaried taxpayers.
The Eight Steps To File Employment Income Only Returns
According to KRA, employees filing employment income-only returns should follow the steps below:
1. Log In To iTax
Visit www.itax.kra.go.ke. Enter your KRA PIN or National ID number and your iTax password to access your account.
2. Select The Appropriate Return
Navigate to the “Returns” section and select “ITR for Employment Income Only.”
3. Confirm The Return Period
On the e-Returns page, confirm the return period. The dates are typically auto-populated by the system. Click “Next” to proceed.
4. Confirm PAYE Details
Go to Section M and verify the PAYE deducted during the year. Ensure the figures match those provided by your employer.
5. Confirm Gross Employment Income
Navigate to Section F and verify your employment income details. Cross-check the figures against your P9 form issued by your employer.
6. Confirm Deductions And Reliefs
Go to Section T and confirm the relevant deductions, including pension contributions, Affordable Housing Levy (AHL), Social Health Insurance Fund (SHIF), and personal relief entries.
7. Confirm And Submit The Return
After reviewing all sections, confirm that the information is accurate and click “Submit.” Approve the submission when prompted.
8. Download The Acknowledgement Receipt
Once submitted, download a copy of the acknowledgement receipt immediately or retrieve it from your registered iTax email address for record-keeping purposes.
Importance Of Accurate Filing
KRA advises taxpayers to ensure that income and deduction figures match official documentation to avoid discrepancies that could trigger compliance reviews.
The P9 form, issued annually by employers, remains the primary reference document for salaried employees when filing returns.
Failure to file returns by the statutory deadline attracts penalties under the Income Tax Act, even for individuals whose PAYE tax has been fully remitted.
Beyond avoiding penalties, timely filing is often necessary to obtain a Tax Compliance Certificate, which is required for government tenders, certain loan applications, and other formal financial transactions.
Digital Compliance And Revenue Mobilisation
The iTax platform forms the backbone of Kenya’s digital tax administration system. Over the past decade, KRA has migrated most tax processes online to improve efficiency, enhance audit trails, and expand the tax base.
Employment income tax remains one of the most reliable revenue streams for the Government, given that PAYE is deducted at source. However, annual filing ensures reconciliation between employer remittances and taxpayer declarations.
The Government has emphasized domestic revenue mobilisation as a key pillar of fiscal consolidation, with tax compliance playing a central role in funding public services and infrastructure.
By simplifying the filing process into clearly defined steps, KRA aims to encourage voluntary compliance while reducing administrative burdens for salaried individuals.
Taxpayers experiencing technical challenges have been encouraged to seek assistance through KRA’s official support channels and digital platforms.
