Thousands of taxpayers with outstanding tax arrears have been handed a lifeline after the Kenya Revenue Authority (KRA) reintroduced a tax amnesty programme that will waive 100 per cent of interest, penalties and fines on eligible tax debts.
In a press release issued on Friday, July 3, KRA announced that the amnesty, reintroduced under the Finance Act, 2026, applies to tax liabilities accrued up to December 31, 2025, with the six-month window running from July 1 to December 31, 2026.
The taxman said the initiative is aimed at easing the financial burden on taxpayers while encouraging voluntary tax compliance.
According to KRA, taxpayers who had already cleared their principal tax by December 31, 2025, will automatically qualify for a full waiver of all outstanding interest and penalties without submitting any application.
Those with no outstanding principal tax but who have accumulated late filing penalties will also receive an automatic waiver once they file all pending tax returns.
For taxpayers who still owe principal tax dating before January 2026, KRA said they can unlock the amnesty by paying the outstanding principal in full during the programme period, after which all related interest and penalties will be written off.
The authority also introduced a flexible payment option for taxpayers unable to settle the full amount immediately.
Such taxpayers can apply for a structured payment plan through the KRA iTax platform, provided they clear the entire principal tax by December 31, 2026, to qualify for the waiver.
KRA noted that the programme builds on the success of its previous tax amnesty initiatives, which recovered Ksh80.9 billion in principal tax payments while helping thousands of taxpayers regularise their tax affairs.
However, the authority clarified that the amnesty does not cover tax liabilities arising from January 1, 2026, onwards. Any taxes, interest and penalties accrued from that date remain fully payable.
Additionally, taxpayers involved in active tax disputes were advised to use KRA's Alternative Dispute Resolution (ADR) framework to settle principal tax obligations before benefiting from the amnesty programme.
KRA urged eligible taxpayers to act early instead of waiting until the end of the year, warning that delaying applications could lead to congestion on the iTax system as the deadline approaches.
The tax authority said the latest amnesty forms part of the government's broader efforts to promote voluntary tax compliance while offering financial relief to individuals and businesses struggling with historical tax obligations.
How to Apply for the KRA Tax Amnesty
Log into iTax: Access the KRA iTax portal using your KRA PIN and password.
Review your tax records: Check your tax ledger to confirm whether you have any outstanding principal tax, penalties or interest accrued on or before December 31, 2025.
Pay outstanding principal tax: If you have unpaid principal tax, clear it in full through the iTax portal to qualify for an automatic waiver of the related penalties and interest.
Apply for a payment plan if necessary: Taxpayers unable to pay the full amount at once can request a structured payment plan via iTax, provided the principal tax is fully settled by December 31, 2026.
File overdue returns: If your only outstanding liability is late filing penalties, submit all pending tax returns. KRA will automatically waive the penalties once all returns have been filed.
Resolve tax disputes: Taxpayers with ongoing tax disputes can use KRA's Alternative Dispute Resolution (ADR) framework to settle the principal tax and become eligible for the amnesty.
No application for some taxpayers: Those who had already cleared all principal tax liabilities by December 31, 2025, do not need to apply, as KRA will automatically process the waiver of interest and penalties.
Meet the deadline: Complete the process by December 31, 2026, when the tax amnesty programme officially ends.
