Kenya Revenue Authority has rolled out a time-limited relief programme allowing taxpayers with overdue obligations to clear their tax debts without being charged penalties and interest, in a move aimed at easing compliance pressure and improving collection of long-standing arrears.
The initiative, introduced by the Kenya Revenue Authority under the Finance Act, 2026, took effect on July 1, 2026, and will remain open for six months, closing on December 31, 2026. It applies to tax debts that accumulated up to December 31, 2025, covering both individuals and businesses.
Under the programme, eligible taxpayers will receive a 100 per cent waiver on penalties, interest and fines once they settle the principal tax within the amnesty period. The relief is conditional on payment of the main tax owed within the set timeline.
Taxpayers with outstanding principal tax from earlier periods can still benefit, as long as they clear the full amount before the deadline. Once payment is made, all related penalties and interest linked to that debt will be cancelled.
The authority has also included cases where only penalties exist, such as late filing fines. In such situations, taxpayers are required to file all missing returns, after which the penalties will be waived automatically if no principal tax is due.
KRA has stated that the waiver will be applied automatically through its system, meaning taxpayers will not be required to submit a separate application. However, they are expected to monitor their iTax records to confirm that the adjustments have been reflected.
Commissioner General Adan Mohamed has urged taxpayers with outstanding obligations to take advantage of the programme within the available window to regularise their accounts and avoid future enforcement action.
To access the amnesty, taxpayers are expected to follow these steps:
- Log into the iTax portal using a valid KRA PIN and password.
- Check the tax ledger to identify any outstanding principal tax, penalties, or interest accrued on or before December 31, 2025.
- Pay the full principal tax amount through the iTax system during the amnesty period to qualify for waiver of penalties and interest.
- Where full payment is not possible at once, apply for a structured payment plan through the portal, provided the principal tax is fully cleared by December 31, 2026.
- File any missing tax returns if the only issue is late filing penalties, after which the penalties will be waived automatically.
- Taxpayers with disputed assessments may use the Alternative Dispute Resolution process to resolve their cases and access the amnesty benefits.
- Those who had already cleared their principal tax by December 31, 2025 will benefit automatically without needing to apply.
- All requirements must be completed before December 31, 2026, when the programme comes to an end.
KRA has encouraged taxpayers to act early within the window to avoid last-minute congestion on the system and delays as the deadline approaches.