KRA Issues Fresh Clarification on Tax Amnesty and Outstanding Debt

The Kenya Revenue Authority (KRA) has issued a fresh clarification on tax amnesty and outstanding debt, saying that the tax amnesty does not wipe out all the tax debt someone has.

In a public awareness campaign under the #ElewaFinanceAct2026 initiative, KRA explained that the amnesty only provides relief on penalties, interest, and fines attached to eligible tax liabilities.

KRA says that taxpayers with outstanding principal tax must still pay the original tax owed by 31 December 2026 to benefit from the waiver.

This clarification from KRA comes amid misconceptions among Kenyans that the tax amnesty automatically clears all tax obligations.

Tax Amnesty

According to KRA, the current programme applies to tax liabilities for periods up to 31 December 2025 and took effect on 1 July 2026 after amendments introduced through the Finance Act 2026 to Section 37E of the Tax Procedures Act.

Under the framework, taxpayers who had already cleared their principal tax liabilities by the end of 2025 automatically qualify for the waiver of related penalties, interest, and fines without submitting an application.

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Those with unpaid principal tax, however, must either settle the amount or apply through the iTax system to benefit from the programme, subject to the applicable conditions.

KRA has encouraged individuals and businesses to log into the iTax portal to check their tax status and complete the necessary steps before the deadline.

Deadline of Payment

The authority says the initiative is intended to ease the burden of accumulated charges while encouraging taxpayers to regularise outstanding tax obligations and improve voluntary compliance.

Previous tax amnesty programmes helped recover billions of shillings in principal tax while enabling thousands of taxpayers to resolve historical tax debts.

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With just months remaining before the 31 December 2026 deadline, KRA is urging taxpayers not to assume all tax debt will be forgiven, emphasising that only qualifying penalties, interest and fines are waived, while the principal tax remains payable where it is still outstanding

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A photo of KRA offices. PHOTO/KRA