If you’re an employer in Kenya, filing NITA returns is not optional. I learned this the hard way when handling payroll compliance. The process is done through the iTax platform and must be completed accurately to avoid penalties.
The good news is that once you understand the steps, filing NITA returns becomes straightforward.
Quick Answer
Log in to iTax, file PAYE returns, fill the NITA Levy (M1 sheet), submit, then generate a payment slip and pay.
What is NITA Levy?
The NITA levy is a mandatory training levy paid by employers under the National Industrial Training Authority.
- Amount: Ksh 600 per employee annually
- Applies to all employees including casual workers
- Collected via Kenya Revenue Authority (KRA)
Step-by-Step: How To File NITA Returns on iTax
1. Log in to iTax
- Visit iTax portal
- Enter your KRA PIN and password
2. Go to File Returns
- Click Returns Menu
- Select File Return
- Choose Income Tax - PAYE
3. Download PAYE Return Form
- Download the Excel return template
- Open and enable editing
4. Fill Employee Details
- Enter payroll details as required
- Ensure all employee records are correct
5. Fill NITA Levy (Sheet M1)
- Navigate to Sheet M1 (NITA Levy Details)
- Enter details for all employees
6. Validate Return
- Confirm entries are correct
- Validate the Excel sheet
7. Upload and Submit
- Upload the validated ZIP file
- Submit return
- Download the acknowledgment receipt
How To Pay NITA Levy on iTax
1. Go to Payments Menu
- Click Payment Registration
2. Fill Payment Details
- Tax Head: Agency Revenue
- Tax Subhead: NITA Levy
- Select tax period
3. Confirm Amount
- System auto-populates levy amount
4. Generate Payment Slip
- Choose payment method (Bank, M-Pesa, Card)
- Download payment slip
5. Make Payment
- Pay via bank or mobile money
- Keep confirmation message
Deadline for Filing NITA Returns
- Due by 9th of the following month after the accounting period
Penalties for Late Filing or Payment
- 5% penalty on unpaid levy
- Fine up to Ksh 100,000 for non-compliance
- Additional Ksh 50,000 per year of default
Common Mistakes to Avoid
- Skipping the M1 NITA sheet
- Uploading unvalidated files
- Missing deadlines
- Incorrect employee count
Pro Tips
- Always file returns even if no changes
- Keep payroll records updated
- Save receipts and payment slips
- File early to avoid last-minute errors
FAQ
Is NITA filing separate from PAYE?
No, it is filed within the PAYE return (M1 sheet).
Can I pay NITA via M-Pesa?
Yes, through iTax payment registration.
Do casual workers count?
Yes, they must be included.
Conclusion
Filing NITA returns on iTax is simple once you understand the process. Just ensure you complete the PAYE return correctly, include the NITA levy details, and pay on time to avoid penalties.
