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KRA gives taxpayers fresh chance to clear tax debts without penalties or interest
04th July, 2026 12:13 AM
The Kenya Revenue Authority (KRA) has unveiled a fresh tax amnesty programme that gives taxpayers an opportunity to clear outstanding tax debts without paying penalties, interest or fines.
The programme, reintroduced under the Finance Act, 2026, officially took effect on July 1, 2026, and will run until December 31, 2026, giving eligible taxpayers a six-month window to regularise their tax affairs.
According to KRA, the amnesty targets tax liabilities that accumulated on or before December 31, 2025, with qualifying taxpayers set to enjoy a 100 per cent waiver on penalties, interest and fines once they meet the programme’s conditions.
“The Kenya Revenue Authority (KRA) announces a tax amnesty programme to ease financial burdens for taxpayers. Re-introduced under the Finance Act, 2026, this initiative waives 100% of penalties, interest and fines on tax debts accrued up to 31 December 2025. The amnesty window opens on 1st July 2026 and closes strictly on 31st December 2026,” the KRA statement read in part.
The authority said the initiative is designed to reduce the financial burden on taxpayers while encouraging voluntary tax compliance across the country.
One of the biggest beneficiaries will be taxpayers who had already settled their principal tax liabilities by December 31, 2025. KRA said these taxpayers will automatically receive a full waiver on all outstanding penalties and interest linked to those taxes without the need to submit any application.
“This builds on the success of the previous two amnesty cycles, which successfully recovered Kshs. 80.9 Billion in principal tax payments while regularising thousands of taxpayers. Key Program Highlights 1. Automatic Waivers for Paid Principal Taxpayers who cleared their principal taxes by 31st December 2025 automatically qualify for a full waiver on outstanding interest and penalties. No formal application is required,” it added.
The authority has also extended relief to taxpayers whose only outstanding obligations are late filing penalties. KRA explained that such taxpayers will automatically qualify for the waiver once they file all overdue tax returns.
For taxpayers who still owe principal taxes accrued before 2026, KRA said paying the full amount during the amnesty period will immediately qualify them for a complete waiver of the corresponding penalties and interest.
Those unable to clear the entire principal tax at once have also been given another option. KRA said they can apply for a structured payment plan through the iTax platform, provided all outstanding principal taxes are fully settled by December 31, 2026.
However, the authority clarified that the programme does not cover tax liabilities arising from January 1, 2026, onwards. Taxes, penalties and interest relating to those obligations will remain fully payable under the law.
“3. Immediate Amnesty via Lump-Sum Settlement Taxpayers who pay their outstanding pre-2026 principal tax in full during this period will instantly receive a waiver on the corresponding penalties and interest. 4. Structured Payment Plan Options Taxpayers unable to make a lump-sum payment can apply for a structured payment plan via KRA iTax. All principal taxes under the plan must be fully cleared by 31st December 2026 to qualify for the waiver,” the statement read.
KRA further advised taxpayers currently involved in tax disputes before courts or tribunals to utilise the authority’s Alternative Dispute Resolution (ADR) framework to settle principal tax amounts and become eligible for the amnesty where applicable.
The tax collector urged eligible taxpayers to log into the iTax portal and take advantage of the programme early, warning against waiting until the last minute to regularise their accounts.
The authority noted that the latest initiative builds on the success of the previous two tax amnesty programmes, which collectively enabled the government to recover KSh80.9 billion in principal tax payments while helping thousands of taxpayers regularise their tax compliance status.
“Tax liabilities arising on or after 1st January 2026 do not qualify. All principal taxes, penalties and interest remain fully due. Ongoing Tax Disputes: Taxpayers in active litigation should utilize the KRA Alternative Dispute Resolution (ADR) framework to settle principal amounts and unlock amnesty benefits,” it added.
KRA said the reintroduced programme forms part of the government’s broader efforts to improve revenue collection while giving taxpayers a fresh opportunity to clear historical tax obligations without the additional burden of accumulated penalties and interest.
“This initiative is part of the Government’s broader commitment to foster voluntary tax compliance and provide financial relief. Taxpayers are strongly urged to log into the KRA ¡Tax Portal early to avoid the end-of-year rush,” it added.
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Steve Ireri
Steve is a senior writer with over four years of experience in digital journalism. His focus is on the showbiz and human interest stories. Emails: [email protected] , [email protected]
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