KRA waives Sh158 billion in penalties for 2.9 million taxpayers in amnesty programme

KRA waives Sh158 billion in penalties for 2.9 million taxpayers in amnesty programme

Taxpayers who do not owe principal taxes but have penalties or interest will automatically have these amounts waived without needing to submit an application.

The Kenya Revenue Authority (KRA) has waived Sh158 billion in penalties, fines, and interest for over 2.9 million taxpayers under its ongoing Tax Amnesty Programme, launched in December 2024.

According to the KRA, the programme allows taxpayers to settle outstanding tax obligations by waiving penalties and interest, with a deadline for full payment set for June 30, 2025.

"Since the launch of the Tax Amnesty Programme, we have collected Sh10.9 billion in principal tax payments," the KRA said.

In a statement, the KRA said the programme provides taxpayers with an opportunity to resolve their outstanding debts on favourable terms.

The authority explained that the initiative covers penalties, fines, and interest on taxes due before December 31, 2023.

Taxpayers who do not owe principal taxes but have penalties or interest will automatically have these amounts waived without needing to submit an application.

“The Tax Amnesty Programme offers taxpayers the chance to regularise their tax records by providing a waiver on penalties, interest, and fines for tax debts accrued up to 31 December 2023,” the KRA stated.

According to the KRA, the programme, which runs until June 30, 2025, is designed to help taxpayers clear their records and regain tax compliance.

Key features of the amnesty include an automatic waiver for individuals and businesses that have no outstanding principal tax for the period in question but owe penalties and interest. These taxpayers do not need to apply to benefit from the relief.

However, those with unpaid principal taxes from before December 31, 2023, must apply through the KRA’s online tax system and submit a structured payment plan to qualify for the amnesty. All outstanding principal must be paid in full by June 30, 2025.

“Taxpayers with outstanding principal taxes for periods up to December 31, 2023, must apply via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by June 30, 2025,” the authority said.

The KRA clarified that the programme does not apply to tax liabilities arising on or after January 1, 2024, and that such debts, including penalties, interest, and principal, remain fully payable.

The KRA also encouraged taxpayers with ongoing disputes to resolve them through the Alternative Dispute Resolution (ADR) mechanism before the deadline.

“Taxpayers with ongoing tax disputes are encouraged to resolve them through the ADR framework to ensure a swift resolution before the amnesty period ends.”

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