KRA Announces 6-Month Tax Amnesty: Who Qualifies and How to Get 100% Penalty Waiver

The Kenya Revenue Authority (KRA) has reintroduced a six-month tax amnesty programme that will allow eligible taxpayers to receive a 100% waiver on penalties, interest and fines related to old tax debts.

In a statement issued on Friday, July 3, KRA said the programme was reintroduced under the Finance Act, 2026, to ease the financial burden on taxpayers while encouraging voluntary tax compliance.

The amnesty applies to tax debts that accumulated on or before December 31, 2025.

“The Kenya Revenue Authority (KRA) announces a tax amnesty programme to ease financial burdens for taxpayers. Re-introduced under the Finance Act, 2026, this initiative waives 100% of penalties, interest, and fines on tax debts accrued up to 31 December 2025,” read part of the statement.

KRA Amnesty Grants Automatic Waivers for Compliant Taxpayers

According to KRA, taxpayers who had already cleared their principal tax by December 31, 2025, will automatically receive a full waiver of any outstanding penalties and interest without the need for an application.

Those with only late filing penalties will also benefit after submitting all pending returns.

Taxpayers with unpaid principal tax from before January 1, 2026, can still benefit by settling the full amount within the amnesty period, after which penalties and interest will be waived.

Also Read: KRA Announces 4-Hour System Shutdown

Flexible Payment Options Through iTax

For those unable to pay in a lump sum, KRA allows applications for structured payment plans via the iTax platform, on condition that the principal tax is fully cleared by the set deadline.

“All principal taxes under the plan must be fully cleared by 31st December 2026 to qualify for the waiver,” the statement read.

KRA clarified that the amnesty excludes any tax obligations arising after January 1, 2026, meaning such liabilities will attract full penalties and interest.

Authority Advises Dispute Resolution for Ongoing Cases

For taxpayers in disputes or litigation, KRA recommended the use of its Alternative Dispute Resolution (ADR) framework to resolve cases and qualify for the amnesty.

“Taxpayers in active litigation should utilize the Alternative Dispute Resolution (ADR) framework to settle principal amounts and unlock amnesty benefits,” the authority stated.

The authority noted that previous amnesty programmes helped recover Ksh. 80.9 billion in principal tax while enabling many taxpayers to regularize their records.

Also Read: Alternative Ways to File KRA Returns as iTax Portal Experiences Downtime

Authority Sets Deadline and Urges Immediate Action

The six-month programme, which began on July 1, 2026, will end on December 31, 2026, with KRA urging early compliance to avoid last-minute pressure.

“This initiative is part of the Government’s broader commitment to foster voluntary tax compliance and provide financial relief,” the statement said.

KRA reaffirmed its commitment to supporting taxpayers while ensuring adherence to tax laws, urging eligible individuals and businesses to take advantage of the programme before the deadline lapses.

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KRA announces a six-month tax amnesty programme offering a 100% waiver on penalties, interest, and fines for tax debts accrued up to December 31, 2025. PHOTO/ KRA