KRA (Kenya Revenue Authority) has announced a tax amnesty program to erase financial burdens of taxpayers. Re-introduced under the Finance Act 2026, this initiative waives 100% of penalties, interest and fines on tax debts accrued up to 31st December 2025. The amnesty window opened on July 1st 2026 and closes on 31st December 2026. This builds on the success of the previous two amnesty cycles, which successfully recovered KSh 80.9 billion in principal tax payments while regularizing thousands of taxpayers.
KRA Tax Amnesty Highlights
According to the KRA Notice, key program highlights include automatic waivers for paid principal. Taxpayers who cleared their principal taxes by 31st December 2025 automatically qualify for a full waiver on outstanding interest and penalties. No formal application is required.
Taxpayers with no principal tax due but facing late filing penalties will receive an automatic waiver once all outstanding returns are fully filled.
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 taxman said taxpayers unable to make a lump sum payment can apply for a structured payment plan via KRA iTax. All principal taxes under the plan must be fully cleared by 31st December 2026 to qualify for the waiver.
The taxman said tax liabilities arising on or after 1st January 2026 do not qualify. All principal taxes, penalties and interest remain fully due. Taxpayers in active litigation should utilize the KRA Alternative Dispute Resolution(ADR) framework to settle principal amounts and unlock amnesty benefits.
The taxman said this initiative is part of the Government’s broader commitment to foster voluntary tax compliance and provide financial relief. Taxpayers are strongly urged to log into the KRA iTax Portal early to avoid the end-of-year rush.
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