KRA reintroduces tax amnesty, waives penalties and interest on pre-2026 tax debts

The Kenya Revenue Authority (KRA) has reintroduced a tax amnesty programme that will see taxpayers receive a 100 per cent waiver on penalties, interest and fines accrued on tax debts up to December 31, 2025, in a move aimed at easing financial burdens and boosting voluntary tax compliance.

The six-month programme, introduced under the Finance Act, 2026, took effect on July 1 and will run until December 31, 2026.

KRA said the initiative builds on the success of two previous tax amnesty programmes, which recovered Ksh80.9 billion in principal tax payments while helping thousands of taxpayers regularise their tax affairs.

Under the programme, taxpayers who had fully paid their principal tax liabilities by December 31, 2025, will automatically qualify for a full waiver of outstanding interest and penalties without the need to submit an application.

The tax authority also announced relief for taxpayers whose only outstanding obligation is late filing penalties.

“Taxpayers with no principal tax due but facing late filing penalties will receive an automatic waiver once all outstanding returns are fully filed,” KRA said.

For taxpayers with unpaid principal taxes accrued before January 1, 2026, the authority said those who settle the outstanding amounts in full during the amnesty period will immediately qualify for a waiver of the corresponding penalties and interest.

Those unable to make a lump-sum payment will have the option of applying for a structured payment plan through the KRA iTax portal. However, the authority said all principal tax under such arrangements must be fully settled by December 31, 2026, for taxpayers to benefit from the waiver.

KRA clarified that tax liabilities arising on or after January 1, 2026, do not qualify for the amnesty and that all principal taxes, penalties and interest relating to those obligations remain payable.

The authority also advised taxpayers involved in ongoing tax disputes to take advantage of its Alternative Dispute Resolution (ADR) framework to resolve principal tax liabilities and become eligible for the amnesty.

KRA said the programme forms part of the government’s broader efforts to encourage voluntary tax compliance while offering financial relief to taxpayers.

The authority urged taxpayers to log into the iTax portal and take advantage of the amnesty early to avoid a rush towards the December 31 deadline.