KRA Forfeits Ksh140 Billion in Tax Waiver to Lure Trillions

The Kenya Revenue Authority (KRA) is offering taxpayers an opportunity to ease their tax burdens, waiving over Ksh140 billion in penalties, interest and fines under the ongoing Tax Amnesty Program, in what appears to be dangling a carrot before shoving out the stick. This move is expected to bring more taxpayers on board and enhance compliance.

With over 1.9 million taxpayers already benefiting, this initiative, launched on 27^th December 2024, seeks to provide relief to those who qualify. The Amnesty program re-introduced in the Tax Procedures (Amendment) Act, 2024 provides a crucial opportunity for taxpayers to clean their tax records, offering a waiver on penalties, interest and fines for tax debts accrued up to 31^st December 2023.

KRA says this underscores its commitment to help taxpayers resolve past tax issues without facing the full financial burden. The program runs until 30^th June 2025. Since the re-launch of the Tax Amnesty program, KRA has successfully collected Ksh4 billion in principal tax payments, demonstrating the program’s wide-reaching impact and the Authority’s commitment to supporting taxpayers in regularising tax compliance.

Key programme Highlights

• Automatic Waiver: Taxpayers who have paid their principal taxes due before 31^st December 2023 automatically qualify for a waiver of related penalties and interest and need not make an application.
• Application Requirement: Taxpayers with outstanding principal taxes up to 31^st December 2023 must apply via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by 30^th June 2025.
• Exclusions: Tax debts arising from 1^st January 2024 and beyond do not qualify for amnesty. All penalties, interest, and principal taxes for debts incurred after this date remain payable.

Taxpayers involved in ongoing tax disputes are encouraged to resolve the disputes through the Alternative Dispute Resolution (ADR) to ensure a swift resolution before the amnesty deadline.

KRA says this initiative is a part of its broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts. It offers a unique chance to settle tax matters on favourable terms and to move forward on a clean slate. Eligible taxpayers are urged to act promptly in order to take full advantage of this amnesty before the 30^th June 2025 deadline.

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