KRA Opens Six Month Tax Amnesty for Penalty Waivers

(NAIROBI) – The Kenya Revenue Authority has opened a tax amnesty programme giving eligible taxpayers a six month window to clear outstanding tax debts without paying accumulated penalties, interest or fines.

In a statement on Friday, KRA said the tax amnesty, introduced under the Finance Act, 2026, took effect on July 1 and will run until December 31, 2026.

Under the programme, taxpayers will receive a 100 percent waiver on penalties, interest and fines relating to tax debts that built up up to December 31, 2025, provided they meet the set conditions.

Those with unpaid principal taxes dating back to before January 2026 can also qualify by settling the outstanding amount in full during the amnesty period, after which the corresponding penalties and interest will be written off.

If a taxpayer’s only outstanding liability is a late filing penalty, such as the KES 2,000 (USD 15.49) penalty for filing returns after the deadline, and they have since submitted all outstanding returns with no principal tax owed, they qualify for the amnesty.

KRA said the waiver will be applied automatically, meaning no separate application is required. Taxpayers are however encouraged to log into their iTax accounts and monitor their tax ledgers to confirm that the penalty has been waived during the amnesty period.

To apply, taxpayers must log into the KRA iTax portal using their KRA PIN and password. They should then check their tax ledger to see whether they have outstanding principal tax, penalties or interest that built up on or before December 31, 2025.

If there is outstanding principal tax, the amount must be paid in full through the iTax portal. Once the principal tax is settled during the amnesty period, the corresponding penalties and interest will be waived.

If unable to pay the full amount at once, a structured payment plan can be applied for through the iTax portal, though the principal tax must be fully paid by December 31, 2026 to qualify. For those whose only outstanding liability is late filing penalties, filing all pending tax returns is required. KRA says the penalties will be waived automatically once all outstanding returns have been submitted.

Taxpayers with ongoing tax disputes can use KRA’s Alternative Dispute Resolution framework to resolve the principal tax liability and qualify for the amnesty. Eligible taxpayers who had already cleared all their principal tax liabilities by December 31, 2025, do not need to apply, as the waiver of penalties and interest will be processed automatically. The process must be completed before December 31, 2026 when the programme comes to an end.

However, thousands of Kenyans hoping to benefit from the programme will have to wait. KRA confirmed that the amnesty feature has not yet been activated on the iTax platform. The absence of the amnesty option drew concerns from taxpayers on Thursday who said they had attempted to settle their principal tax but could not proceed because the portal has not enabled the application process.

“We are ready to make payment for principal tax owed, but payment of principal tax alone is not possible without first applying for amnesty. When do you plan to activate the amnesty tab on iTax?” one taxpayer asked.

Responding to the concerns, KRA acknowledged the delay and urged patience, saying official communication would soon be issued. According to the authority, the clarification and guidance on the tax amnesty programme would be issued alongside other tax changes introduced under the Finance Act 2026.

“Kindly be patient as official communication will be issued regarding all tax changes introduced by the Finance Act 2026, including guidance on the implementation of the Tax Amnesty,” KRA said.

The delay has sparked frustration among many taxpayers who had expected the amnesty to take effect immediately after the law came into force. Coupled with KRA’s failure to extend the income tax filing deadline, many had hoped to use the programme to settle long standing tax obligations without incurring penalties and interest.

This comes two days after the June 30 deadline for filing 2025 income tax returns lapsed. Despite reported system hitches on the final tax filing day, KRA ruled out any extension, insisting that Kenyans had been given enough time to file.