KRA Introduces Phased Tax Filing System to Simplify 2026 Returns

Senior government officials, led by the Head of Public Service, Felix Koskei, visited the Kenya Revenue Authority (KRA) offices in Nairobi on Thursday as the Authority announced major changes to how taxpayers will file their income tax returns for the 2026 filing season.

In a statement, KRA revealed the introduction of a phased filing approach, aimed at making tax filing easier, faster, and more personalised for millions of taxpayers.

"Anyone who holds a KRA and Personal Identification Number (PIN) is required to file tax returns annually, regardless of income status," KRA stated.

"For 2026, we're introducing something different: a phased filing approach that treats you like the individual you are, not just another PIN."

The changes are designed to end the last-minute rush that overwhelms both taxpayers and the iTax system every year. Under the new system, taxpayers will be grouped based on income complexity, and KRA will send SMS and email notifications guiding them on when and how to file.

Categories of Taxpayers for 2026

1. Employment Income Only

Taxpayers who earned only employment income in 2025 will have pre-populated returns on iTax. They simply need to confirm their employment details and submit the return.

2. Employment Income Plus Additional Sources

This category includes taxpayers who earned employment income alongside other sources such as rental income or withholding tax income. KRA will provide targeted guidance for accurate filing.

3. Nil and Non-Filers with Withholding Tax Income

These taxpayers, who previously filed nil returns or did not file at all but had income subject to withholding tax, will receive personalised notifications to understand obligations and claim refunds where applicable.

KRA assured that the phased filing approach will reduce confusion, relieve pressure during peak filing periods, and make the process faster and more efficient.

Taxpayers are advised to update their contact information on iTax to ensure they receive timely SMS and email notifications for personalised filing guidance.