KRA reintroduces tax amnesty, waives penalties and interest on pre-2026 debts

The Kenya Revenue Authority (KRA) has reintroduced a tax amnesty programme that will see taxpayers receive a 100 per cent waiver on penalties, interest and fines for tax debts accrued up to December 31, 2025.

The six-month programme, introduced under the Finance Act, 2026, took effect on July 1 and will run until December 31, 2026.

KRA said the initiative is aimed at easing the financial burden on taxpayers while encouraging voluntary tax compliance.

"The amnesty window opens on 1st July 2026 and closes strictly on 31st December 2026," the taxman said in a statement on Friday.

Under the programme, taxpayers who had already cleared their principal tax liabilities by December 31, 2025, will automatically have all outstanding penalties and interest waived without the need to submit an application.

Similarly, taxpayers with no outstanding principal tax but who owe late filing penalties will also qualify for an automatic waiver once they file all pending tax returns.

Those with unpaid principal taxes accrued before January 1, 2026, can also benefit from the amnesty by settling the outstanding amount in full during the programme period.

According to KRA, taxpayers who pay the principal tax in a lump sum "will instantly receive a waiver on the corresponding penalties and interest."

For those unable to make a one-off payment, the authority has provided an option to apply for a structured payment plan through the iTax platform.

However, all principal tax under the arrangement must be fully paid by December 31, 2026, for the taxpayer to qualify for the waiver.

KRA clarified that the amnesty only applies to tax liabilities incurred up to December 31, 2025.

"Tax liabilities arising on or after 1st January 2026 do not qualify. All principal taxes, penalties and interest remain fully due," the authority said.

The taxman also advised taxpayers involved in ongoing tax disputes to utilise its Alternative Dispute Resolution (ADR) framework to resolve principal tax obligations and become eligible for the amnesty.

KRA noted that the latest programme builds on the success of the previous two tax amnesty initiatives, which recovered Ksh.80.9 billion in principal tax payments while helping regularise thousands of taxpayers.

The authority urged taxpayers to log into the iTax portal and take advantage of the amnesty before the December 31 deadline to avoid a last-minute rush.