KRA offices/FILE
The Kenya Revenue Authority (KRA) has reintroduced a tax amnesty programme that will see taxpayers with outstanding tax liabilities incurred up to December 31, 2025, receive a 100 per cent waiver on penalties, interest and fines, provided they meet the set conditions.
In a statement issued Friday, July 3, KRA said the amnesty, reintroduced under the Finance Act, 2026, took effect on July 1 and will run until December 31, 2026.
The initiative is aimed at easing the financial burden on taxpayers while encouraging voluntary tax compliance.
The taxman said the programme builds on the success of the previous two amnesty cycles, which recovered Sh80.9 billion in principal tax payments while helping thousands of taxpayers regularise their tax affairs.
Under the new programme, taxpayers who had fully settled their principal tax liabilities by December 31, 2025, will automatically qualify for a full waiver of all outstanding penalties, interest and fines linked to those debts.
"No formal application is required for eligible taxpayers whose principal taxes had already been paid," KRA said.
The authority also announced relief for taxpayers with no principal tax liability but who have accumulated late filing penalties. Such taxpayers will automatically receive a waiver once they file all outstanding tax returns.
For those with unpaid principal taxes dating to before January 1, 2026, KRA said they can still benefit by paying the outstanding principal amount in full during the amnesty period.
"Taxpayers who pay their outstanding pre-2026 principal tax in full during this period will instantly receive a waiver on the corresponding penalties and interest," the authority said.
Recognising that some taxpayers may not be able to clear their liabilities in a lump sum, KRA has also introduced structured payment plans through the iTax platform.
Taxpayers opting for this arrangement must, however, ensure that all principal taxes are fully paid by December 31, 2026, to qualify for the waiver.
The authority clarified that tax liabilities arising from January 1, 2026, onwards are excluded from the amnesty.
Such debts, together with any associated penalties and interest, will remain fully payable.
KRA further advised taxpayers involved in ongoing tax disputes to take advantage of the Alternative Dispute Resolution (ADR) framework to settle principal tax amounts and become eligible for the amnesty.
The authority urged taxpayers to log into the iTax portal early to confirm their tax status, clear outstanding principal taxes or apply for payment plans instead of waiting until the deadline.
According to KRA, the programme forms part of the government's broader efforts to enhance tax compliance while giving taxpayers an opportunity to resolve historical tax obligations without the burden of accumulated penalties and interest.
