KRA Explains Why Retired Public Servants Must Still File Tax Returns

The Kenya Revenue Authority (KRA) clarified that retired civil servants must still file annual tax returns as long as their PIN is active, even with no income, in which case they must file nil returns. Non-compliance attracts a Ksh 2,000 penalty. However, pension income from registered schemes is 100% tax-exempt, and gratuity payments after July 1, 2025 are also exempt. KRA also noted that PIN holders with no tax obligation are not required to file returns.