The Kenya Revenue Authority (KRA) has opened a six-month tax amnesty giving eligible taxpayers an opportunity to have penalties, interest and fines waived on qualifying tax debts accrued up to December 31, 2025.
The programme, which took effect on July 1, 2026, will run until December 31, 2026.
Under the amnesty, taxpayers with outstanding principal tax can have the related penalties, interest and fines waived if they settle the qualifying principal tax within the amnesty period. KRA says the relief was introduced under the Finance Act, 2026.
Who qualifies for the tax amnesty?
There are two main categories of taxpayers who can benefit.
Taxpayers who have no outstanding principal tax for periods up to December 31, 2025, but still have penalties, interest or fines relating to those periods, qualify automatically.
Those with outstanding principal tax can also qualify, provided they fully settle the qualifying principal tax by December 31, 2026. Once the principal tax is cleared, KRA will automatically remit the corresponding penalties, interest and fines.
What if you cannot pay the tax in one go?
KRA has provided an option for taxpayers who cannot settle their outstanding principal tax through a single payment.
Eligible taxpayers can apply for an Automatic Payment Plan through iTax and pay the qualifying principal tax in agreed instalments.
However, the entire qualifying principal tax must be cleared by December 31, 2026 for the taxpayer to receive the amnesty.
KRA warns that any qualifying principal tax remaining unpaid after the deadline will not benefit from the waiver and will continue to attract applicable penalties and interest.
What about taxpayers who have not filed returns?
The amnesty also covers taxpayers who have outstanding returns for periods ending December 31, 2025.
They are required to file the missing returns during the amnesty period.
Where the returns are Nil returns and no principal tax becomes payable, the taxpayer will automatically qualify for the waiver of late-filing penalties.
If filing the outstanding returns results in principal tax becoming payable, the taxpayer must settle the principal tax by December 31 to qualify for the related amnesty.
Do taxpayers need to apply?
For most eligible taxpayers, the amnesty is automatically processed through iTax once the qualifying conditions have been met.
Those who have no outstanding principal tax but have penalties, interest or fines relating to eligible periods do not need to submit an amnesty application.
Taxpayers with outstanding principal tax must settle the qualifying amount, either in full or through an approved payment arrangement, before the December 31 deadline.
How to apply for a payment plan
Taxpayers unable to make a lump-sum payment can use the iTax payment-plan function.
The process involves logging into iTax, selecting Payments, choosing Apply for Payment Plan (New) and completing the required application.
Once the plan is approved, taxpayers generate a Payment Registration Number (PRN) and continue making the agreed instalment payments until the qualifying principal tax is fully settled.
KRA advises taxpayers to carefully verify their PRN details before making payment because incorrectly paid penalties, interest or fines may not be refundable or transferable.
What debts are covered?
The amnesty applies to interest, penalties and fines relating to tax liabilities for periods up to December 31, 2025, subject to the conditions provided under the law.
However, not every government debt is covered. KRA says customs duties administered under the East African Community Customs Management Act do not qualify for the tax amnesty.
Penalties, interest and fines relating to tax periods from January 1, 2026 are also generally outside the amnesty.
What happens after taxpayers qualify?
Once all the conditions are met, KRA’s iTax system automatically processes the amnesty.
The taxpayer’s ledger is updated to reflect the waiver, while an Amnesty Certificate and notification are made available through iTax.
The certificate can also be accessed through the iTax consult-and-reprint function.
The deadline taxpayers cannot miss
The most important date for taxpayers is December 31, 2026.
KRA says all qualifying principal taxes must be fully paid by that date to unlock the waiver of the associated penalties, interest and fines.
Taxpayers are therefore encouraged to review their iTax accounts, file any outstanding returns, resolve discrepancies and begin payment arrangements early rather than waiting until the deadline.
KRA says taxpayers should also continue filing and paying their current taxes on time, since the amnesty does not cover new liabilities arising from January 1, 2026.
