Taxpayers with old debts have another chance to clean up their records as the Kenya Revenue Authority (KRA) pushes eligible Kenyans to take advantage of the 2026 Tax Amnesty Programme before the December 31 deadline.
The six-month programme offers a 100 per cent waiver on eligible interest, penalties and fines linked to tax liabilities accrued up to December 31, 2025. It took effect on July 1, 2026, under the Finance Act, 2026.
KRA renewed the call on Tuesday, August 25, warning taxpayers against waiting until the final days of the year before sorting out their tax affairs.
“The 2026 Tax Amnesty Program allows eligible taxpayers to settle any principal taxes or file any missing returns,” KRA said, adding that the programme provides a 100 per cent waiver on interest, penalties and fines for eligible periods ending December 31, 2025.
Who can benefit from the amnesty?
The relief is available to taxpayers with qualifying tax obligations from 2025 and earlier, although the conditions depend on their tax position.
Those who have already paid their principal tax but still have outstanding interest and penalties do not need to make a separate application. KRA says the qualifying amounts are automatically waived through iTax.
Taxpayers who have no outstanding principal tax but have accumulated penalties for failing to file returns can also benefit. They must first submit all their missing returns, after which the eligible late filing penalties are waived.
For those who still owe principal tax, the amount must be paid during the amnesty period. KRA also allows eligible taxpayers to request a structured payment plan through iTax, but the entire principal amount must be cleared by December 31, 2026 for the waiver to apply.
Taxpayers involved in disputes over eligible debts may also use KRA’s Alternative Dispute Resolution process to settle the principal amount and unlock the amnesty benefits.
What taxpayers need to remember
The amnesty does not mean that every amount appearing on an iTax account will be erased.
Tax liabilities arising from January 1, 2026 onwards are specifically excluded from the programme. These taxes, together with applicable interest and penalties, remain payable under the normal tax rules.
KRA has advised taxpayers to log into iTax, review their tax ledgers and deal with missing returns, outstanding principal tax and any discrepancies early.
There is also a practical reason for avoiding the last-minute rush. KRA says some system issues may require taxpayers to seek assistance, including cases where qualifying penalties or fines continue appearing on their accounts.
The authority has therefore urged taxpayers to act while there is still time.
“Don’t wait for the last minute, regularise your tax affairs today and stay compliant,” KRA said.
For taxpayers carrying old tax problems, December 31 offers a useful opportunity to settle the actual tax owed and leave behind the additional financial burden of qualifying penalties, interest and fines.
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