How to deregister as a taxpayer in Kenya remains a common concern for individuals and businesses that no longer need a KRA PIN. Many Kenyans register a PIN for jobs, tenders, or businesses that later end.
Others leave the country or register by mistake. KRA allows lawful deregistration through the iTax system. However, many applications fail due to unpaid taxes or missing steps. This guide explains the full process in simple terms.
It helps you avoid delays, penalties, and rejection while closing your tax obligations correctly and permanently.
How To Deregister As A Taxpayer In Kenya Using iTax
Deregistration as a taxpayer in Kenya happens online through the KRA iTax portal. You can either cancel your entire PIN or remove specific tax obligations such as VAT or PAYE. KRA only approves deregistration when your tax record is clean.
Before you start, confirm that you filed all required returns. Clear any penalties or outstanding taxes. KRA will not process a deregistration request if your PIN shows compliance issues.
The process applies to individuals, sole proprietors, and companies that have stopped operations, ended employment, migrated permanently, or registered a PIN in error.
Step-by-Step Process on iTax
Follow these steps carefully to avoid rejection.
| Step | Action Required |
|---|---|
| 1 | Log in to the KRA iTax portal using your PIN and password |
| 2 | Click the Registration menu on the dashboard |
| 3 | Select PIN Cancellation or Tax Obligation Cancellation |
| 4 | Choose the tax obligation or full PIN to cancel |
| 5 | Provide a valid reason for deregistration |
| 6 | Confirm personal or company details |
| 7 | Update or confirm address information |
| 8 | Submit the application for KRA review |
After submission, iTax forwards your request to the relevant KRA office. Some cases receive approval within days, while others require manual verification.
Reasons Accepted by KRA for Deregistration
KRA requires a valid and truthful reason. Incorrect or vague explanations delay approval.
Common accepted reasons include
- Closure of business operations
- End of employment with no taxable income
- Permanent relocation outside Kenya
- Erroneous or duplicate PIN registration
KRA may request proof such as a business closure letter, exit documentation, or an employer confirmation. Upload clear and accurate documents when prompted.
Important Rules You Must Know Before Deregistration
How To Deregister As A Taxpayer In Kenya comes with strict compliance rules. Ignoring them leads to automatic rejection.
You cannot deregister if you have
- Unfiled tax returns
- Unpaid taxes or penalties
- Active VAT or PAYE obligations
- Ongoing audits or disputes
If you only want to stop filing VAT or PAYE, cancel those obligations instead of cancelling the entire PIN. This option works best for people who remain employed or expect future income.
After approval, iTax updates your PIN status. You will no longer receive filing reminders for cancelled obligations.
What Happens After You Submit the Application
Once you submit your deregistration request, KRA reviews your tax history. Officers may contact you for clarification. Respond promptly to avoid delays.
If KRA approves the request, the system updates your PIN status automatically. If KRA rejects the request, iTax shows the reason. Resolve the issue and reapply.
Always download and keep confirmation messages or approval notices for your records.
Final Word
Deregistering as a taxpayer in Kenya requires accuracy, honesty, and full tax compliance. Follow the iTax steps carefully, clear all obligations, and provide valid reasons. Proper deregistration protects you from future penalties and unnecessary tax demands.
