The Kenya Revenue Authority has moved to clear the air for employed Kenyans earning extra income on the side, after growing confusion during the tax filing season.

In a public notice issued on Tuesday, February 3, KRA said salaried workers must declare all income earned during the year in one return. This includes income beyond their monthly pay.

That extra income may come from freelancing, consultancy, online work, farming, rental properties, or small businesses.

“If employed, but have additional income, declare your employment income together with any additional income,” KRA said in the notice.

The Authority explained that filing returns based only on salary does not give a true picture of a taxpayer’s earnings if they have side activities bringing in money.

For employees, the process begins with the P9 form. This document, available on the iTax platform, shows salary details and tax already deducted by an employer.

Once the P9 details are entered, taxpayers are required to add any other income earned during the year. KRA stressed that this applies even if the extra income was irregular or earned for only part of the year.

Kenyans who run businesses but are not formally employed were advised to keep proper records of their income and allowable expenses.

“Declare all income earned during the year of income if the income was not accounted for in the monthly Turnover Tax regime,” KRA said.

The Authority also reminded Kenyans who had no income in 2025, but still hold a KRA PIN with an income tax obligation, that they must file a Nil Return.

According to KRA, the tax filing window runs from January 1 to June 30, 2026. Those facing difficulties were encouraged to seek help through the KRA call centre, email support, or official social media channels.

The clarification comes as more Kenyans turn to side hustles to cope with rising living costs, blurring the line between formal employment and self-employment.