How to File Company Tax Returns in Kenya: (2025 Guide)

Learn how to file company tax returns in Kenya, avoid penalties, and stay compliant with KRA. Discover the step-by-step process, deadlines, and FAQs answered clearly.

If you run a business in Kenya, understanding how to file company tax returns in Kenya is not just important—it’s a legal obligation. Filing your returns ensures that your company stays compliant with the Kenya Revenue Authority (KRA), avoids hefty penalties, and maintains a clean business reputation.

If you’re reading this, chances are you’ve been searching through Business Blogs in Kenya trying to understand what’s required. The good news? You’re in the right place. This article walks you through everything you need to know about filing company tax and annual returns in Kenya, whether you run a small business, a limited company, or a startup.

Let’s break it all down in a simple, conversational way, no jargon, no confusion.

Table of Contents

Why It’s Important to File Company Tax Returns in Kenya

Legal Obligation: Filing your company tax returns is a mandatory declaration to the government about your business’s financial activity for a specific period. Whether your business made profits or losses, you are required to declare it.
Determining Tax Liability: The Kenya Revenue Authority (KRA) uses these returns to calculate how much tax your company owes.
Avoid Penalties: Failing to file returns can lead to penalties, audits, and possible legal consequences.
Enhances Credibility: Accurate and timely filing improves your company’s reputation and credibility, which is important when applying for tenders, loans, or business partnerships

Step-by-Step Guide: How to File Company Tax Returns in Kenya

Here’s a simple process to follow:

1. Register for a KRA PIN

Before you can file any returns, your company must have a valid KRA PIN. This is usually acquired during company registration via eCitizen. If you don’t have one, apply through the KRA iTax portal.

2. Keep Accurate Financial Records

Maintain proper accounting records for each financial year. This includes income statements, balance sheets, invoices, payroll records, and bank statements.

3. Determine Your Accounting Period

The accounting period for most companies in Kenya runs from 1st January to 31st December, but you can apply for a different period with KRA approval.

3. Prepare Your Financial Statements

You may need a qualified accountant or auditor to prepare your books depending on your business structure. If you’re a limited company, audited financial statements are mandatory.

5. File Tax Returns Through the iTax Portal

Here’s how to file on iTax depending on your company’s activity status:

A. Filing Tax Returns When Your Company Has Active Income

If your company earns income from business activities, you must report these earnings when filing tax returns. This helps calculate the correct tax owed and keeps your business compliant with KRA rules.

To file your return:

Visit itax.kra.go.ke
Log in using your Company’s KRA PIN and Password
Navigate to Returns > File Return
Choose Income Tax and select the correct tax obligation (e.g., Income Tax – Company)
Download the Excel return form (IT2C) from iTax
Fill in your financial details including income, expenses, and profit/loss
Validate the form and upload the ZIP file
Submit and download the acknowledgment receipt

B. Filing Nil Returns When Your Company Had No Income or Activity

If your company had no income or activity during the tax period, you must still file a nil return to stay compliant. Report zero income and expenses on the IT2C form and submit it via the iTax portal.

Log in to iTax using your Company’s PIN
Go to Returns > File Nil Return
Select Income Tax – Company (Nil Return)
Enter the accounting period
Submit and download the acknowledgment receipt

Filing nil returns confirms to KRA that your company is compliant even without business activity.

By following the appropriate process, you ensure your company remains in good standing with the tax authorities.

How to File Company Annual Returns in Kenya

Don’t confuse tax returns with annual returns, which are filed with the Registrar of Companies under the Business Registration Service. Annual returns are filed once every year, within 30 days after the Annual General Meeting or by the company’s incorporation anniversary.

Here’s how:

Visit eCitizen
Log into your company profile
Select the “Business Registration Service”
Choose “Annual Return” and input the required company details (directors, shareholders, company status, etc.)
Pay the fee (usually Ksh 1,000 + service charge)
Download the receipt and acknowledgment letter

Annual returns confirm that your company is active and provide updated company information to the registrar.

FAQs on How to File Company Tax Returns in Kenya

How to file company tax returns in Kenya?
Follow the iTax process: log in, download the form, fill your financials, validate, upload and submit online.
How to file company annual returns in Kenya?
Use eCitizen under Business Registration Service to declare your company’s compliance annually with the Registrar of Companies.
Can a company file nil returns in Kenya?
Yes. If your company had no income or operations during the year, you can file a nil return through the iTax portal.
What is the deadline for filing tax returns?
For companies, the return must be filed six months after the end of the accounting period. For most, this means by 30th June of the following year.
Which companies are required to file an annual return?
All registered companies in Kenya, including dormant and inactive ones, must file annual returns.
What is the time limit for filing annual return of the company?
Annual returns should be filed within 30 days after holding your Annual General Meeting (AGM), and no later than each anniversary of incorporation.
How are small businesses taxed in Kenya?
Small businesses may fall under Turnover Tax (ToT) if they earn between Ksh 1 million to Ksh 25 million annually. They’re taxed at 1% of gross turnover, filed monthly.
What are the annual returns of a company?
They are declarations made to the Registrar of Companies updating shareholding, directorship, and confirming the company’s legal existence.
What happens if you don’t file returns in Kenya?
You’ll face penalties, interest charges, and possible legal enforcement. The penalties can accumulate monthly.
What is the penalty for filing nil return?
If a company fails to file any return—including nil—the penalty is Ksh 20,000 per year under the Income Tax Act.
Who pays corporate tax in Kenya?
All resident companies and permanent establishments of non-residents. The rate is typically 30% of net profits.
How do I file a return in KRA portal?
Log into iTax, go to Returns, select Income Tax – Company, download the Excel form, fill in, validate, upload and submit.
How do I submit a return online?
Only via the KRA iTax portal using your company PIN. Upload your return form as a ZIP file and download the receipt.
Can I file returns online?
Yes. All returns must be filed online through itax.kra.go.ke. Manual submissions are no longer accepted.
When to file nil returns in Kenya?
File nil returns if your company had no income during the accounting year. They must still be submitted by the tax return deadline.
What is the accounting period of a company?
It’s typically January 1st to December 31st, unless otherwise approved by KRA. Companies must declare their period during registration.
Can I get my P9 form online?

Yes, if you’re a director drawing a salary, you or your employer can download the P9 form via iTax under the P9 Form section or from your HR software.

Final Thoughts on How to File Company Tax Returns in Kenya

Filing company tax returns in Kenya is not as complicated as it may seem—once you understand the process and deadlines. Whether you’re a startup or an established business, staying compliant with both the Kenya Revenue Authority (KRA) and the Registrar of Companies is essential.

As part of your compliance routine, ensure you:

All companies must file returns (active or nil) on the iTax portal.
The deadline to file is 30th June every year.
Filing late attracts a penalty of Ksh 20,000.

Ready to take control of your business compliance?

This guide should help you confidently file company tax returns in Kenya without stress. If you’re ever in doubt, consider hiring a tax professional to guide or file on your behalf.

Spread the word