KRA iTax 2026 — Complete Guide
In 2026, KRA's iTax system introduced pre-filled tax returns for salaried employees. Most Kenyans can now file in under 5 minutes using just their PIN and national ID. Here is everything you need to know.
The Biggest 2026 Change: Pre-Filled Returns
KRA now automatically pulls your payroll data from employer P10 submissions directly into your iTax return. If you are a salaried employee with only PAYE income, your return is essentially pre-completed — you just verify it, add any additional income or unclaimed reliefs, and submit.
Step-by-Step: How to File Your 2026 iTax Return
Log into iTax
Go to itax.kra.go.ke and sign in with your KRA PIN and password. If you forgot your password, click "Forgot Password" — you will receive a reset link via email.
USSD: Dial *572# on Safaricom for basic filing
Select "File Return"
Under the "Returns" menu, select "File Return" → "Income Tax" → "Individual". For tax year 2025 (filed in 2026), select "IT1" (Individual Tax Return).
Accept Pre-Filled Data
From 2026, iTax automatically pulls your PAYE data from employer submissions. Review the pre-filled gross pay, PAYE deducted, and statutory contributions. If the figures match your P9 form, accept them.
Declare Other Income
If you have rental income, business income, dividends, or sold property, declare these separately. Salaried employees with only PAYE income can skip this step.
Claim Any Missing Reliefs
If your employer did not apply all your reliefs (mortgage interest, insurance premium, pension), declare them here to get a tax refund or reduce any tax payable.
Submit and Pay (if applicable)
Submit the return. If you owe additional tax, pay via M-Pesa (Paybill 572572) or bank transfer. If you overpaid PAYE, file for a refund — KRA processes refunds within 30 working days.
What Changed in 2026 — Full Breakdown
Pre-Filled Returns for PAYE Employees
The biggest 2026 change: iTax now automatically pulls your employment income data from your employer's P10 submissions. Most salaried employees can file their annual return in under 5 minutes.
Impact: High — affects all salaried employeesKRA PIN + National ID Filing
From 2026, employees with only PAYE income can file using just their KRA PIN and national ID number — no P9 form required for basic filing. The system retrieves your data automatically.
Impact: High — simplifies complianceAI-Led Digital Monitoring
KRA has deployed machine learning systems that cross-reference employer payroll submissions against employee returns. Discrepancies are flagged automatically for audit. Accuracy is now more important than ever.
Impact: Medium — tighter enforcementE-TIMS Integration for Employers
The Electronic Tax Invoice Management System (E-TIMS) is now mandatory for all VAT-registered businesses. This affects payroll by ensuring all employee expense claims must be backed by E-TIMS invoices.
Impact: Medium — HR/Finance teamsMortgage Relief Now Auto-Applied
Employers are now required to automatically apply mortgage interest relief during payroll for employees who have submitted qualifying home loan documentation. Previously this required self-declaration at year-end.
Impact: High — homeowners with mortgagesiTax Mobile App Improvements
The KRA iTax mobile app (available on Android and iOS) now supports full return filing, payment, and status checking. Push notifications remind you of upcoming deadlines.
Impact: Low — convenience improvementEmployer Obligations in 2026
Monthly P10 Filing
Employers must file the P10 return (employee PAYE summary) by the 9th of each month for the previous month's payroll. This feeds the pre-filled employee return system.
Annual P9 Issuance
All employees must receive their P9 tax deduction certificate by January 31. Use our P9 Generator tool to create these quickly.
E-TIMS Invoices
All business expense invoices paid by the employer must be backed by E-TIMS electronic receipts. Cash payments without E-TIMS receipts are no longer tax-deductible.
NSSF/SHIF Reconciliation
Statutory contribution filings must reconcile exactly with payroll. iTax cross-checks PAYE submissions against NSSF and SHIF remittances automatically.
Common iTax Mistakes and How to Fix Them
❌ Wrong KRA PIN format
Fix: KRA PINs are exactly 11 characters: letter, 9 digits, letter (e.g. A123456789B). Double-check with KRA's PIN Checker at kra.go.ke.
❌ Pre-filled data doesn't match P9
Fix: If your P9 shows different figures from the pre-filled data, it means your employer's P10 submissions may be incorrect. Ask HR to verify and refile the P10 if needed.
❌ Filing a nil return when you have income
Fix: If you earned any income — even from casual work — you cannot file a nil return. Nil returns are only for those with zero income in the year.
❌ Missing rental income declaration
Fix: Rental income is taxable in Kenya at 10% for monthly rent above KES 24,000. Even small-scale landlords must declare it. Non-declaration is now flagged by KRA's data systems.
❌ Not claiming available reliefs
Fix: Many employees leave money on the table by not claiming mortgage interest relief, insurance premium relief, or pension contribution relief. These can significantly reduce your PAYE.