Explainer: What 2026 KRA tax amnesty means for businesses and employees
Businesses and employees with old tax problems have until December 31, 2026, to clear qualifying liabilities and have related interest, penalties and fines waived under a new Kenya Revenue Authority (KRA) tax amnesty. The programme, introduced under the Finance Act, 2026, took effect on July 1 and covers qualifying tax debts and liabilities accrued up […]
The Kenya Revenue Authority (KRA) has launched a tax amnesty program under the Finance Act 2026, allowing businesses and employees to clear certain qualifying tax liabilities until December 31, 2026. The amnesty provides a 100% waiver of eligible interest, penalties, and fines on tax debts accrued up to December 31, 2025. However, the principal tax amount remains payable, and taxpayers must settle it within the amnesty period to benefit from the relief.
The programme applies to tax liabilities from January 1, 2026, onwards, excluding taxes arising from January 1, 2026, onwards. Business owners should review their iTax ledgers to determine the distinction between principal tax, penalties, interest, and fines. They can either settle the principal tax in full or opt for a structured payment plan, ensuring all principal tax is cleared by December 31, 2026.
Employees receiving PAYE deductions should not assume they are entitled to a refund; instead, they should verify their records and contact KRA if necessary. The amnesty is temporary, running from July 1, 2026, to December 31, 2026, and does not cover tax liabilities arising from 2026 onwards. KRA encourages taxpayers to review their records early to ensure compliance and unlock the benefits of the amnesty.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
