The Kenya Revenue Authority (KRA) has introduced a tax amnesty program aimed at providing relief to eligible taxpayers with outstanding interest and penalties related to tax liabilities accrued up to December 31, 2025.
However, not all outstanding tax debts qualify for this amnesty. Taxpayers must understand the specific conditions and periods covered to determine their eligibility for relief.
Tax Debts Covered and Exclusions
The amnesty applies exclusively to tax liabilities that were accrued on or before December 31, 2025. This means that taxpayers with qualifying outstanding amounts from this period may benefit from relief on interest and penalties, provided they meet the necessary conditions.
Importantly, tax liabilities arising from January 1, 2026, onward are not included in this amnesty. Interest and penalties related to these post-2025 periods remain fully due and payable.
Automatic Waivers for Principal Tax Paid
Taxpayers who have already cleared their principal tax liabilities by December 31, 2025, but still have outstanding interest and penalties do not need to submit an application for the waiver.
They automatically qualify for a 100% waiver of the outstanding interest and penalties. The KRA system is expected to update the taxpayer’s account automatically to reflect this relief.
Additionally, taxpayers who do not have outstanding principal tax but have accumulated penalties due to late filing can also benefit from the amnesty. Relief will be granted automatically once all outstanding tax returns are fully filed.
Addressing Tax Disputes
Taxpayers currently involved in ongoing tax disputes are not necessarily excluded from the amnesty program. Those with active cases before the courts or the Tax Appeals Tribunal can utilize the KRA Alternative Dispute Resolution (ADR) framework to resolve their principal tax obligations.
Once the principal tax amount is settled through ADR, taxpayers can then unlock the benefits of the amnesty concerning qualifying interest and penalties.
It is crucial for taxpayers to ensure their returns are up to date and, where necessary, utilize the available dispute-resolution mechanisms to settle qualifying principal tax amounts.
