Thousands of unsuspecting taxpayers risk a severe crackdown, as KRA opens a final six-month window to hunt outstanding debts.

The Kenya Revenue Authority (KRA) has reintroduced a tax amnesty programme that will allow eligible taxpayers to clear outstanding obligations without paying penalties, interest and fines. The six month programme, introduced under the Finance Act, 2026, opened on July 1 and will run until December 31, 2026. It applies to tax debts accrued up to December 31, 2025.

KRA said the initiative is meant to ease financial pressure on taxpayers and encourage voluntary tax compliance.
The authority said the previous two amnesty cycles helped recover Sh80.9 billion in principal tax payments while regularising thousands of taxpayers.

Key programme highlights

1. Taxpayers who had cleared their principal tax by December 31, 2025 will automatically qualify for a full waiver on outstanding interest and penalties. KRA said no formal application will be required.
2. Taxpayers with no principal tax due but who have penalties for late filing will also receive an automatic waiver once they file all outstanding returns.
3. Those with outstanding principal tax for periods before 2026 can benefit from the amnesty by paying the full amount during the amnesty period. Once the principal tax is cleared, the corresponding penalties and interest will be waived.
4. KRA said taxpayers who cannot make a lump sum payment can apply for a structured payment plan through the iTax portal. However, all principal taxes under the plan must be fully cleared by December 31, 2026 to qualify for the waiver.

Exclusions
Tax liabilities arising from January 1, 2026 onwards will not qualify for the amnesty. KRA said all principal taxes, penalties and interest for such debts remain fully due.

Taxpayers involved in active tax disputes have been advised to use KRA’s Alternative Dispute Resolution framework to settle principal amounts and unlock amnesty benefits.