The Kenya Revenue Authority has launched a six-month tax amnesty programme running from July 1 to December 31, 2026, offering eligible taxpayers a complete waiver on accumulated penalties, interest, and fines for tax debts accrued up to December 31, 2025. This is one of the most significant relief measures KRA has introduced in recent years, giving taxpayers a genuine opportunity to clear historical liabilities without the punishing weight of accumulated penalties.
For many Kenyan taxpayers and businesses carrying old tax debts, this amnesty represents a real chance to start fresh with KRA. Understanding exactly how it works and what you need to do to qualify is essential before the December deadline arrives.
Who Gets Automatic Relief
If you already paid your principal tax in full by the end of 2025, you do not need to apply for anything. Your accumulated penalties and interest will be waived automatically once KRA processes the amnesty programme, with no separate application process required on your part.
Similarly, if you have no principal tax due but are facing late filing penalties, you will receive automatic relief once you file all your outstanding returns. This covers taxpayers who may have missed filing deadlines in previous years but did not actually owe additional tax once their full financial position was assessed.
What if You Still Owe Principal Tax
For taxpayers with outstanding tax arrears, the penalty and interest waiver is conditional on settling the principal tax amount owed. This is the core mechanism of the amnesty. KRA is willing to forgive penalties and interest entirely, but the underlying tax you actually owe still needs to be paid.
If you cannot pay the full principal amount in one lump sum, you can apply for a structured payment plan through the iTax Portal. The condition is that the full principal must be cleared by December 31, 2026, giving you the full six-month window to spread payments while still qualifying for the penalty waiver.
What This Amnesty Does Not Cover
It is important to understand the boundaries of this programme. The amnesty applies strictly to historical tax debts accrued up to December 31, 2025. Any tax obligations, penalties, or interest that accrue from January 1, 2026 onward remain fully payable under normal terms.
Also read:Kenya Revenue Authority (KRA) — iTax, Tax Returns; Customs Services | Business Listings Kenya
This means the amnesty is not an invitation to delay current tax obligations. If you owe tax for the 2026 financial year, that liability sits outside the amnesty entirely and will attract standard penalties and interest if not paid on time.
If You Have an Ongoing Tax Dispute
Taxpayers currently in dispute with KRA over their tax assessments need to resolve their principal amounts through the Alternative Dispute Resolution framework before they can access amnesty benefits. This means disputes cannot simply be left unresolved while waiting for the amnesty to apply automatically. Active engagement with the ADR process is required to determine what the actual principal liability is before any waiver can be granted.
Given the recent High Court ruling against KRA in the Pernod Ricard case, where the tax authority was found to have missed statutory deadlines, taxpayers with disputes should also review whether any procedural failures by KRA might affect their case as they pursue resolution through ADR.
What You Should Do Now
If you suspect you have outstanding tax liabilities from before 2026, the first step is checking your position directly on the iTax Portal or through a registered tax agent. Confirming exactly what you owe in principal tax, separate from accumulated penalties and interest, gives you clarity on what needs to be settled to qualify for the waiver.
If you cannot pay the full amount immediately, apply for a structured payment plan early rather than waiting until closer to the December deadline. KRA’s payment plan processing takes time, and starting the process with several months of runway gives you the best chance of clearing your principal tax comfortably within the amnesty window and locking in the full penalty and interest waiver.