KRA Nil Returns applies to everyone who owns a KRA PIN but do not have a source of income; sometimes referred to as the unemployed.
If not employed and do not have an alternative source of income i.e Rental, Business or Consultancy income you file nil returns. If you have a KRA PIN, the law states that you should file a return. If you have no income file a nil return. Failure to do so as indicated in the Tax Procedures Act leads to penalties.
Please be informed that the penalty is now Kshs. 2,000 for late filing of individual returns. This is stipulated in the 2018 Finance Act. If you are in employment, you need to file KRA Returns using your P9 Form.