KRA waives Sh140 billion in tax penalties to boost compliance
According to KRA, over 1.9 million taxpayers have benefited from the initiative after settling their principal taxes for liabilities incurred up to December 2023.
The Kenya Revenue Authority (KRA) has granted a tax amnesty, waiving Sh140 billion in interest and penalties for businesses and individuals who have cleared their principal tax obligations.
The tax relief, part of the second phase of a partial amnesty programme, aims to encourage compliance and ease the burden on taxpayers.
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According to KRA, over 1.9 million taxpayers have benefited from the initiative after settling their principal taxes for liabilities incurred up to December 2023.
As a result, the tax agency has collected Sh4 billion from those who took advantage of the programme.
Taxpayers who had no outstanding principal taxes as of December 2023 automatically qualified for the waiver.
Those with unpaid principal tax amounts have been given the option to clear their dues in full or enter a structured payment plan under the iTax system.
The deadline for settling the principal amounts to qualify for the waiver is June 30, 2025.
The taxman has also urged those involved in ongoing disputes to seek resolution through Alternative Dispute Resolution before the amnesty window closes.
“Taxpayers involved in ongoing tax disputes are encouraged to resolve the disputes through the Alternative Dispute Resolution to ensure a swift resolution before the amnesty deadline,” said Rispah Simiyu, former Commissioner for Domestic Taxes, now renamed the Large and Medium Taxpayers Department.
“This initiative is a part of KRA’s broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts. It offers a unique chance to settle tax matters on favourable terms and to move forward on a clean slate,” she added.
The tax amnesty programme, which reopened on December 27, 2024, is expected to enhance revenue collection by bringing more taxpayers into compliance while relieving businesses and individuals from hefty penalties and interest accumulated over the years.
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