Taxpayers with outstanding obligations to the Kenya Revenue Authority (KRA) will benefit from a six-month tax amnesty window running from July 1 to December 31, 2026.
The initiative, reintroduced under the Finance Act, 2026, applies to tax liabilities accrued up to December 31, 2025 and offers a 100 per cent waiver on penalties, interest and fines once qualifying conditions are met.
It builds on earlier amnesty cycles that helped recover Sh80.9 billion in principal taxes while regularising thousands of taxpayers.
Under the programme, taxpayers who had fully settled their principal tax by December 31, 2025, will automatically qualify for a waiver on outstanding penalties and interest, without the need for formal application.
Those with no principal tax due but facing late filing penalties will also receive automatic relief once all outstanding returns are fully filed.
Taxpayers who choose to clear their outstanding principal tax in full during the amnesty period will immediately receive waivers on associated penalties and interest.
For those unable to make lump-sum payments, KRA announces the provision of structured payment plans through the iTax system, with all principal taxes required to be fully paid by December 31, 2026, to qualify for relief.
However, the authority has excluded tax liabilities arising from January 1, 2026 onwards, meaning all principal taxes, penalties and interest within that period remain fully payable.
Taxpayers involved in ongoing disputes are required to resolve principal amounts through the Alternative Dispute Resolution (ADR) mechanism to access the amnesty benefits.
“This initiative is part of the Government's broader commitment to foster voluntary tax compliance and provide financial relief,” the taxman noted in a statement.
KRA therefore urges taxpayers to take early action by logging into the iTax portal to avoid congestion as the deadline approaches, reiterating that the programme is designed to encourage compliance while easing the burden of accumulated penalties.
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