Kenya Revenue Authority Introduces Alternative Tax Filing for Workers Missing Employer Documentation
Nairobi, 13 May 2026
The Kenya Revenue Authority has launched a groundbreaking digital system enabling workers to file their annual tax returns without traditional P9 forms from employers. This innovation particularly benefits informal sector employees and refugees with work permits who previously struggled with tax compliance due to lacking standard employment documentation. The new iTax platform alternative comes as KRA imposes £1,600 penalties for each year of non-filing, making this simplified process crucial for thousands of workers across different employment categories seeking to avoid costly violations.
Digital Filing Process for Workers Without P9 Forms
The Kenya Revenue Authority has created an alternative pathway for employees whose employers fail to provide P9 forms, a common challenge in Kenya’s diverse employment landscape. Workers can now file their KRA returns using the ‘ITR for Employment Income Only’ option on the iTax platform, provided their employer has submitted PAYE deductions through the iTax system [1]. This digital solution requires employees to verify their income figures against monthly payslips, ensuring accuracy despite the absence of traditional annual documentation [1]. The process represents a significant shift from conventional filing methods, acknowledging that many workers operate outside formal employment structures that typically generate P9 forms.
Essential Requirements and Documentation
To access the simplified filing system, taxpayers need their KRA PIN, iTax password, and a computer with Microsoft Excel [1]. Unlike traditional P9-based filing, workers using this alternative method must rely on their monthly payslips to compile annual figures [1]. The P9 form typically summarises annual earnings, deductions, gross pay, taxable salary, tax charged, and pension contributions, whilst payslips show only monthly earnings and deductions for individual pay periods [1]. Workers without P9 forms must therefore calculate their total annual figures by aggregating data from their monthly payslips, a process that requires careful attention to detail but remains accessible to most employees.
New Deductions and Relief Provisions for 2026
The 2026 tax year introduces three significant deductions that all workers must declare: the Post-Retirement Medical Fund (PRMF), the Affordable Housing Levy, and the Social Health Insurance Fund (SHIF) [1]. These additions represent substantial changes to Kenya’s tax landscape, with specific relief periods applying to different contributions. SHA relief applies to contributions made between January and September 2026, whilst Affordable Housing Levy relief covers contributions from March to November 2026 [1]. Workers filing their returns must declare these deductions on either Sheet L or Sheet T, with December 2026 deductions for PRMF, Affordable Housing Levy, and SHIF specifically captured on Sheet T [1].
Compliance Deadlines and Penalty Structure
The Kenya Revenue Authority imposes a penalty of KES 2,000 for each year an employee fails to file income tax returns on iTax [1]. This penalty structure underscores the importance of the new simplified system, particularly for workers who previously faced barriers due to missing employer documentation. The filing process concludes with uploading a zipped validated file and downloading the iTax acknowledgement receipt, providing workers with official confirmation of their compliance [1]. As workers approach the 2026 filing season, the alternative system offers a practical solution for maintaining tax compliance regardless of employer cooperation or formal employment status, ensuring that penalties can be avoided even when traditional documentation remains unavailable.