KRA Launches Tax Amnesty with 100% Penalty Waiver Until December 31

The Kenya Revenue Authority (KRA) has rolled out a new Tax Amnesty Programme, giving taxpayers until 31 December 2026 to settle eligible tax arrears while benefiting from a 100% waiver of penalties, interest and fines.

The amnesty, reintroduced under the Finance Act, 2026, took effect on 1 July 2026 and applies to tax liabilities accrued up to 31 December 2025.

The initiative is aimed at encouraging voluntary tax compliance while easing the financial burden on individuals and businesses with outstanding tax obligations.

Who qualifies?

According to KRA, taxpayers who had already settled their principal tax by 31 December 2025 will automatically receive a waiver of all related penalties, interest and fines. No application is required for this category of taxpayers.

Those who still owe principal tax can also benefit by paying the outstanding amount in full between 1 July and 31 December 2026.

Once the principal tax is settled, the corresponding penalties and interest will be waived. Taxpayers who are unable to make a lump-sum payment may apply for a structured payment plan through the iTax system, subject to KRA's approval.

Boosting compliance

KRA says the latest amnesty builds on the success of previous programmes, which helped recover KSh80.9 billion in principal tax while enabling thousands of taxpayers to regularise their tax affairs. The authority hopes the renewed initiative will improve compliance, increase revenue collection and reduce the backlog of unresolved tax cases.

Deadline to remember

The tax authority has urged eligible taxpayers to take advantage of the programme before the 31 December 2026 deadline. Once the amnesty period ends, penalties and interest will continue to apply to outstanding tax liabilities that do not qualify for the waiver.