KRA waives Sh170 billion in fines as tax amnesty nears deadline
The amnesty, which was first rolled out in 2023 and later revived in December 2024, targets penalties and interest on tax liabilities accumulated up to December 31, 2023.
Over three million Kenyans have secured relief from tax-related penalties and interest under the Kenya Revenue Authority’s (KRA) ongoing amnesty programme, with the total value of waived charges reaching Sh170 billion by the end of May.
The amnesty, which was first rolled out in 2023 and later revived in December 2024, targets penalties and interest on tax liabilities accumulated up to December 31, 2023.
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It allows individuals and businesses to regularise their tax records by clearing outstanding principal taxes, either in full or through instalments, while benefiting from full waivers on related charges. The programme is scheduled to close at the end of this month.
“As of the end of May 2025, over Sh170 billion in penalties, interest, and fines have been waived, with more than three million taxpayers benefitting from the amnesty programme, demonstrating the programme’s wide-reaching impact,” KRA said.
“This reflects great uptake of the initiative and the programme’s success in resolving legacy issues in tax ledgers.”
While the focus of the amnesty remains on offering relief, the initiative has also helped the authority collect Sh13 billion in principal tax.
During the 2023/24 financial year, the programme saw 2,617,111 taxpayers granted amnesty, resulting in collections of Sh43.9 billion.
Only taxpayers without outstanding principal taxes for the eligible period automatically qualify for the waivers.
However, those with unpaid principal amounts can still apply for amnesty, provided they settle their balances either at once or in agreed instalments by June 30.
KRA also reminded Kenyans that filing all pending returns, including nil returns, is necessary to benefit from the programme.
“A key point worth noting is that taxpayers who haven’t filed their returns for several years, including nil returns, will need to do so before settling the principal tax payments, before the amnesty can apply. Filing relevant returns will automatically trigger the system to waive interest and penalties accrued, making one eligible for amnesty without needing another application,” KRA noted.
Taxpayers with disputed debts or under review can also benefit, but they must first engage KRA, agree on the final payable amounts, and commit to clearing them before the deadline.
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