Taxpayers with outstanding debts to the Kenya Revenue Authority (KRA) have been reminded that the 2026 tax amnesty is not a cancellation of their entire tax bill.
KRA said the relief only covers qualifying penalties, interest and fines, while the original principal tax remains payable. The Authority clarified on Thursday, August 27, as taxpayers move closer to the December 31, 2026 deadline.
KRA cautioned taxpayers against assuming that the amnesty means their entire outstanding tax debt will disappear.
“We hope mnaelewa that tax amnesty does not mean all your tax debt is waived,” KRA said.
The Authority added that taxpayers with outstanding principal tax must settle the amount to benefit from the relief.
The 2026 Tax Amnesty Programme was introduced under the Finance Act 2026 and took effect on July 1. It covers qualifying tax debts accrued up to December 31, 2025, and provides a 100 per cent waiver of penalties, interest and fines once the conditions are met.
This means a taxpayer who owes Ksh100,000 in principal tax and has accumulated additional penalties and interest cannot simply walk away from the Ksh100,000. The principal amount still has to be paid before the taxpayer can enjoy the applicable relief.
“For clarity, kuna relief, but the principal tax bado inalipwa,” KRA said.
Who can benefit from the amnesty?
The programme is aimed at taxpayers with eligible tax liabilities from periods ending on or before December 31, 2025. Tax debts arising from January 1, 2026 are not covered by the amnesty and remain payable together with any applicable penalties and interest.
Taxpayers who had already paid their principal tax by December 31, 2025 but were left with penalties and interest can receive the full waiver automatically, provided they meet the requirements.
Those who have outstanding principal tax have two main options. They can pay the amount in full during the amnesty period, after which the qualifying penalties and interest are removed, or they can apply for a structured payment plan through iTax.
KRA says all principal tax covered by such a payment arrangement must be cleared by December 31, 2026 for the taxpayer to qualify for the waiver.
The Authority has also provided relief for taxpayers whose only outstanding liabilities are penalties linked to late filing. Once they file all their outstanding returns, eligible late filing penalties can be waived.
KRA on deadline
KRA is now encouraging taxpayers with old liabilities to check their iTax accounts early rather than waiting until the final days of the programme.
The taxman has warned that taxpayers may need to resolve other issues, including missing payments, return amendments, objections, appeals and disputed assessments, before their tax position can be fully reconciled.
There are also some iTax issues that KRA says are being addressed. For example, some payment registration numbers may initially show penalties and interest alongside the principal tax. Taxpayers have been advised to check their ledgers and ensure they pay the correct principal amount rather than settling charges that qualify for amnesty.
Once the required principal tax has been cleared, KRA says the system can remove the qualifying penalties, interest and fines and generate an amnesty certificate.
The certificate is sent to the taxpayer’s registered email address and can also be accessed through the iTax portal.
The current amnesty runs until December 31, 2026. KRA is therefore urging taxpayers with eligible debts to use the remaining period to regularise their tax affairs instead of assuming that the entire debt will be erased.
The message from the taxman is simple: the amnesty can make an old tax debt lighter, but it does not make the original tax obligation disappear.
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