KRA To Automate Tax Returns From 2026

Why Manual Tax Filing for Salaried Workers Is Ending

For years, filing annual tax returns in Kenya has been a stressful ritual for salaried employees. Every June, thousands of workers scramble to collect their P9 forms, log into the iTax system, and manually key in their income details. The process is often confusing, time-consuming, and prone to errors. But this is about to change. The Kenya Revenue Authority (KRA) has announced a major shift: from January 2026, manual tax filing for most salaried workers will be phased out. Instead, the iTax platform will automatically generate pre-filled tax returns using data KRA already receives from employers and other government systems. This means that for many employees, filing will be as simple as entering your national ID, reviewing the pre-populated figures, and clicking submit.

Why KRA is moving away from manual filing

There are several reasons behind this decision, and they all align with KRA’s broader strategy of simplifying tax compliance, reducing errors, and embracing digital transformation.

1. Efficiency for taxpayers. Manual entry often leads to mistakes. A small typo or wrong calculation can delay refunds, trigger audits, or even lead to penalties. Pre-populated returns reduce human error by relying on verified employer PAYE data.
2. Cost savings for KRA. Processing millions of manually filled returns requires huge administrative resources. Automation frees up staff and systems to focus on more complex tax matters such as audits, fraud detection, and expanding the tax base.
3. Better use of data integration. Over the last few years, KRA has upgraded its systems and linked payroll information from employers with national registration databases. By using this existing data, KRA can ensure that employee returns match employer PAYE submissions, eliminating unnecessary duplication.
4. Improved compliance and transparency. Pre-populated returns reduce disputes between taxpayers and the revenue authority. When employer-submitted PAYE data matches the employee’s auto-filled return, there is less room for manipulation or underreporting.

What exactly is changing?

The biggest change is the elimination of the P9 form for most salaried workers. Traditionally, employees relied on P9s to know their annual pay, taxes deducted, and reliefs. Starting January 2026, this information will already be captured in iTax.

• For salaried employees: If your only income source is employment, you won’t need to key in anything. KRA will use employer PAYE data to pre-fill your return. You’ll simply log in, confirm, and submit.
• For nil filers: Low-income earners who previously filed nil returns will also benefit from auto-filled returns. Their iTax accounts will reflect their status automatically.
• For employees with multiple income streams: If you earn rental income, business income, or other taxable earnings beyond employment, you will still need to update your return to reflect these additional sources.

Benefits for taxpayers

The move away from manual filing is not just a convenience — it solves real problems faced by workers every year.

• Less paperwork. No more chasing P9 forms from HR or waiting until the last minute to request payroll statements.
• Reduced stress. Filing season often comes with panic and long queues at KRA offices. With auto-filled returns, this pressure will ease.
• Faster refunds. Accurate, consistent data means KRA can process refunds more quickly, reducing the long delays that frustrate many taxpayers.
• Fairer compliance. By aligning employer PAYE data with employee returns, disputes and mismatches will drop.

Read Also: How to Apply for KRA Penalty and Interest Waiver via iTax in 2025

Why now?

This change is part of KRA’s digital transformation agenda, which focuses on modernizing the tax system, cutting compliance costs, and improving efficiency. In 2023, KRA rolled out simplified PAYE filing tools for employers, making payroll submissions easier and more accurate. With that foundation in place, KRA is now able to extend the automation to employees’ annual returns.

The revenue authority is also under pressure to expand the tax base and improve compliance rates. By making tax filing easier for compliant workers, KRA can shift its focus to closing gaps in other sectors such as the informal economy, real estate, and digital businesses.

What employees should do now

Even with pre-populated returns, you will still need to play an active role. Here’s how to prepare:

1. Ensure your employer files PAYE correctly. The accuracy of your auto-filled return depends on your employer’s submissions. Confirm that your payroll deductions are being remitted to KRA on time.
2. Keep personal details updated. Check that your KRA PIN, national ID, and payroll records match. Errors in basic data can cause mismatches.
3. Review your return before submitting. Pre-filled does not mean problem-free. Always confirm your reliefs, benefits, and additional income sources.
4. Seek guidance if needed. KRA will provide tutorials, FAQs, and help centers to guide taxpayers through the new system.

What employers need to know

Employers remain central to this new model. They must continue filing PAYE returns accurately and on time, since this data directly feeds into employee records. While employees may no longer rely on P9s for filing, employers are still required to maintain payroll records and provide them to staff upon request.

Failure to submit accurate PAYE returns could create problems for employees and attract penalties for employers.

Challenges and concerns

While the move is positive, it also raises some concerns:

• Data security. With more personal and financial data being integrated across systems, taxpayers want reassurance that their information is protected.
• System reliability. Past filing seasons have seen iTax crash under heavy traffic. KRA will need to invest in stronger infrastructure to avoid disruptions.
• Complex cases. Workers with multiple sources of income will still face a more complex process. KRA must ensure the system is flexible enough for them.

Final thoughts

The removal of manual tax filing marks a big milestone for Kenya’s tax system. By eliminating the tedious P9-based process, KRA is not only making life easier for salaried workers but also building a stronger, more transparent compliance framework.

For employees, this means less stress, faster refunds, and more confidence that their taxes are being handled accurately. For KRA, it means better use of technology, reduced administrative costs, and improved compliance.

As Kenya embraces this new model in January 2026, the key for every taxpayer is simple: stay informed, double-check your pre-filled returns, and ensure your employer files PAYE correctly. If done right, this shift could make filing taxes in Kenya less of a headache and more of a routine click.