Who qualifies for KRA’s tax debt waiver? Everything taxpayers need to know
By Paulette Mboga, July 4, 2026The Kenya Revenue Authority (KRA) has introduced a new tax amnesty programme that allows eligible taxpayers to clear old tax debts without paying penalties, interest or certain fines.
The programme, which was brought back under the Finance Act, 2026, began on July 1, 2026, and will remain open until December 31, 2026. During this six-month period, qualifying taxpayers can settle their tax obligations and have extra charges waived if they meet the required conditions.
Who qualifies?
The waiver only covers tax liabilities that arose on or before December 31, 2025. This means taxpayers with older outstanding tax debts may qualify for relief, provided they follow the rules set out under the programme.
What must taxpayers do?
To qualify for the waiver, taxpayers must first pay the principal tax. This is the original amount of tax owed before any penalties, interest or fines were added.
Unlike previous arrangements, taxpayers do not have to clear the penalties and interest before applying for the waiver. Once the principal tax is paid within the amnesty period, KRA will waive the related penalties, interest and eligible non-compliance fines.
How does it work?
For example, if someone owed Ksh100,000 in income tax for 2020 and the unpaid amount later attracted Ksh30,000 in penalties and interest, they only need to pay the Ksh100,000 principal within the amnesty period. After meeting that condition, the additional Ksh30,000 in penalties and interest can be waived under the programme.
Steps to take before applying
Tax experts are advising taxpayers to first check their tax records through KRA’s iTax system. This helps determine whether there is any outstanding principal tax that needs to be settled.
Reviewing tax records early also allows taxpayers to identify any unpaid obligations before the deadline. After confirming the amount owed, taxpayers should pay the outstanding principal tax within the set timeline to qualify for the waiver.
They are also encouraged to keep track of KRA’s guidance on how the waiver will be processed for eligible accounts. The tax amnesty gives individuals and businesses an opportunity to clear old tax debts at a lower cost. Those who qualify can avoid paying penalties, interest and eligible fines, provided they settle the principal tax before the programme closes on December 31, 2026.