KRA Relaunches Tax Amnesty Programme with Full Penalty Waivers Until December 2026

The Kenya Revenue Authority (KRA) has reinstated its Tax Amnesty Programme, effective from July 1, 2026, providing taxpayers a six-month period to clear outstanding tax debts without penalties, interest, or fines.

This initiative, established under the Finance Act 2026, targets tax liabilities incurred on or before December 31, 2025. It will run until December 31, 2026, encouraging voluntary compliance by offering a complete waiver on accrued charges.

Who Qualifies?

• Taxpayers who fully settled principal tax liabilities before December 31, 2025: Automatically eligible for full waiver of remaining penalties and interest.
• Individuals and businesses with no outstanding principal tax but late-filing penalties: Required to file overdue returns to have penalties cleared.
• Taxpayers with unpaid principal tax before 2026: Must pay full outstanding amount during the amnesty period to qualify for waiver of related charges.
• Those engaged in disputes at Tax Appeals Tribunal or courts: Can benefit if they settle principal tax through KRA's Alternative Dispute Resolution framework.

Note that tax liabilities arising from January 1, 2026, onwards are excluded and subject to standard tax regulations.

Application and Payment Plans

Eligible taxpayers can apply via KRA's iTax portal under the "Debt and Enforcement" section by selecting "Amnesty application." For those unable to pay in full immediately, structured payment plans are available, allowing up to six instalments if started in July 2026, with full payment due by December 31, 2026.

KRA encourages taxpayers to coordinate with tax service offices to expedite amendments, assessments, and dispute resolutions to benefit from the programme within the stipulated timeframe.