The Kenya Revenue Authority (KRA) has reintroduced a tax amnesty programme that will waive 100% of penalties, interest and fines on eligible tax debts accrued up to December 31, 2025, in a move aimed at easing the financial burden on taxpayers and boosting voluntary tax compliance.
The programme, reintroduced through 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 amnesty programmes, which helped recover KSh80.9 billion in principal tax payments while enabling thousands of taxpayers to regularise their tax affairs.
Under the new framework, taxpayers who had fully settled their principal tax liabilities by December 31, 2025, will automatically receive a full waiver of outstanding penalties and interest without the need to submit an application.
The authority will also automatically waive late filing penalties for taxpayers with no outstanding principal tax once all pending tax returns have been filed.
For taxpayers with unpaid principal taxes incurred before January 1, 2026, KRA is offering two options. Those who pay the full principal amount during the amnesty period will immediately qualify for a waiver of the associated penalties and interest.
Taxpayers who are unable to make a lump-sum payment may instead apply for a structured payment plan through the KRA iTax platform. However, all principal tax under the arrangement must be fully paid by December 31, 2026, for the waiver to apply.
KRA clarified that the amnesty does not extend to tax liabilities arising from January 1, 2026. Such obligations, including the related penalties and interest, will remain fully payable under existing tax laws.
The authority also advised taxpayers involved in ongoing tax disputes to use its Alternative Dispute Resolution (ADR) framework to resolve principal tax liabilities and become eligible for the amnesty.
KRA said the programme is part of the government’s broader efforts to encourage voluntary tax compliance while offering financial relief to taxpayers. The authority urged eligible taxpayers to access the iTax portal early to take advantage of the six-month window and avoid a last-minute rush before the December 31 deadline.
