Kenyan salaried employees can now breathe a sigh of relief, thanks to the Kenya Revenue Authority’s (KRA) introduction of a more efficient and user-friendly way of filing tax returns.
The new system, launched in February 2026, promises to streamline the annual tax filing process by eliminating the need for complex spreadsheets and reducing the chances of errors that typically come with manual entry.
For years, salaried workers in Kenya struggled with the complicated process of filing annual tax returns, often relying on Excel sheets to report their income and taxes. While Excel was a helpful tool, it was also time-consuming and prone to mistakes, leading to frustration for many taxpayers. The process is now much simpler, thanks to the KRA's introduction of the ‘Simplified Return’ feature on the iTax platform.
The New Simplified Return Feature
The new feature targets salaried workers whose only source of income is from employment. In the past, employees had to manually enter their details into the tax filing system, a process that was tedious, particularly for those who had no other sources of income or deductions to consider.
With the new update, however, KRA has made it easier by automatically populating key fields in the tax return form, including salary and tax details, based on information submitted by employers.
This development significantly reduces the amount of time employees have to spend on filing their returns and cuts down on the chances of errors. All a taxpayer needs to do now is review the pre-filled details and confirm whether they are entitled to any additional tax reliefs such as mortgage payments or insurance premiums.
For example, if an employee is paying a mortgage or has taken out a life insurance policy that qualifies for tax relief, the system allows them to select "Yes" and enter the required details. If they don’t have any qualifying expenses, they simply click "No" and move on.
The system is designed to ensure that the vast majority of salaried workers do not need to manually input their salary details or tax deductions, making the entire filing process faster and much more accurate. By eliminating the need for spreadsheets and manual data entry, the KRA has significantly improved the user experience, especially for those who may not be familiar with tax filing procedures.
How the New Process Works
The process of filing taxes through the iTax platform is now much more straightforward and less prone to error. Below is an overview of how salaried employees can easily file their tax returns using the Simplified Return feature.
Log in to the iTax platform: To begin, employees need to visit the KRA website (kra.go.ke) and log in to the iTax platform. Users can log in using their National Identification Number (ID). Once logged in, they will have access to all the necessary tools for filing their returns.
Navigate to the "Returns" Tab: After logging in, the user will find a tab labeled "Returns" on the platform. By clicking on this tab, employees can access the simplified return filing option.
Select the 'Simplified Returns' Option: Under the "Returns" tab, employees should select the 'Simplified Returns' feature. This option is specifically designed for salaried workers who have only one employer and no additional sources of income.
Choose the Type of Return: Once the ‘Simplified Returns’ option is selected, the system will ask the employee to choose the type of income. For salaried employees, the appropriate selection is “Income Tax Return (ITR) for employment income only.”
Select the Filing Period: The next step is to choose the period for which the return is being filed. The employee will need to specify the tax year they are filing for, and the system will generate a pre-filled return document with all the required details.
Review and Confirm Details: Once the pre-filled document appears, employees simply need to review the information, confirming whether there are any additional reliefs or deductions they are entitled to. If there are none, they can proceed by selecting "No" and submit the return.
Submit the Tax Return: After reviewing and confirming the details, employees can submit the return directly from the platform. The KRA will process the return, and employees will receive an acknowledgment once the filing is successfully completed.
The entire process, from logging in to submitting the tax return, has been simplified to make the experience as smooth and quick as possible for salaried workers.
Benefits of the Simplified Return Feature
The key benefit of the new Simplified Return feature is that it eliminates the complexity that traditionally made filing tax returns a stressful and error-prone process. Some of the key advantages of this new system include:
Time-saving: Since salary and tax details are pre-filled from employer submissions, employees no longer need to manually enter data. This dramatically reduces the time required to file returns.
Error Reduction: By automating the process and pre-populating information, the chances of errors—such as entering incorrect salary or tax deduction figures—are minimized. This makes the system more reliable.
Ease of Use: The simplified interface and straightforward steps make it accessible to everyone, even those without a deep understanding of tax filing procedures. It takes only a few clicks to complete the return.
Increased Compliance: The simplicity of the system is likely to encourage more salaried employees to file their returns on time, reducing the instances of late or missed filings and the penalties that can come with them.
Reduced Stress: The removal of the complicated Excel sheet process means employees can now file their taxes without the worry of making mistakes or dealing with confusing spreadsheets. This is especially helpful for employees who are not familiar with tax regulations.
A Step Toward Phased Filing
The launch of the Simplified Return feature is part of a broader effort by KRA to make tax filing easier for all Kenyans. In February 2026, KRA also introduced a phased filing system for the upcoming tax year. Under this system, taxpayers will be grouped according to the complexity of their income, allowing for a more personalized and efficient filing experience. Taxpayers will be notified via SMS or email about when they should file, helping to avoid the usual rush that occurs in the final days before the deadline.
This phased approach is expected to make tax filing even easier by ensuring that taxpayers are not overwhelmed by the last-minute rush that typically clogs the system.
The Bigger Picture: Making Tax Filing More Efficient
The new simplified process for salaried employees represents a significant step toward improving tax compliance in Kenya. By reducing the complexity of tax filing, KRA is making it easier for citizens to meet their tax obligations, which in turn helps to improve the country’s tax revenue collection.
The changes are also aligned with global trends where tax authorities are increasingly using digital platforms to streamline processes and make filing simpler for taxpayers. As Kenya continues to modernize its tax systems, these updates are a positive move that will ultimately benefit both the government and taxpayers alike.
The introduction of the Simplified Return feature by KRA is a welcome change for salaried employees in Kenya. It makes the tax filing process quicker, easier, and more accurate, reducing the burden on employees who may have previously struggled with complicated spreadsheets and manual data entry. As the country continues to evolve its tax systems, this is a step in the right direction towards greater efficiency, transparency, and compliance.
Salaried workers can now file their tax returns with minimal effort, and with the additional phased filing system introduced by KRA, taxpayers can expect even greater ease in the future. By continuing to improve and modernize tax filing, KRA is creating a smoother, more accessible process that benefits everyone in the long run.
