KRA raises Sh2 billion in first month of tax amnesty programme
The tax collection represents 6.7 per cent of the total target, which aims to collect Sh30 billion by June 2025.
The Kenya Revenue Authority (KRA) has raised Sh2 billion in the first month of its extended tax amnesty program.
The tax collection represents 6.7 per cent of the total target, which aims to collect Sh30 billion by June 2025.
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The new amnesty phase, which began on December 27, 2024, offers relief to individuals and businesses with tax debt accrued up to December 31, 2023.
"I should tell you that we have collected. It is something around Sh1.9 billion or Sh2 billion already this January and I want to urge Kenyans to please take advantage of the programme," KRA Chairman Ndiritu Muriithi said.
He further said that the importance of the tax amnesty in helping businesses clear their outstanding tax liabilities without incurring penalties or fines.
The amnesty, introduced under the Tax Procedures (Amendment) Act, 2024, is designed to waive interest, penalties, and fines for individuals and businesses that have cleared their principal taxes by December 31, 2023.
KRA clarified that taxpayers who have already settled the principal taxes will automatically benefit from the amnesty, while those with outstanding taxes must apply to KRA and submit a payment plan for the remaining dues.
The programme is expected to help the government recover the Sh30 billion target, as tax authorities are keen to maximize the potential of this extended amnesty.
"The target is Sh30 billion and this was partially informed by our experience with the earlier amnesty. As the board, we are pushing the management telling them that we would like to see as many Kenyans benefit from the amnesty," Muriithi added.
The previous round of the tax amnesty, which ran from September 2023 to June 2024, raised Sh50.5 billion, although it fell short of its target by Sh500 million.
The government waived Sh200 billion in penalties and interest during that phase, providing relief to over 1 million businesses and individuals with arrears.
As the new phase of the program continues, KRA is urging all eligible taxpayers to take advantage of the waivers before the June 2025 deadline.
The hope is that the initiative will boost compliance and help businesses get back on track while improving the government's revenue collection.
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