KRA announces tax amnesty on interest, penalties and fines

The Kenya Revenue Authority (KRA) has launched a tax amnesty program for eligible taxpayers, offering relief from interest, penalties, and fines on tax liabilities dating back to December 31, 2025. The programme commenced on July 1, 2026, and will remain open until December 31, 2026. Eligibility for the amnesty is determined by fulfilling specific legal conditions, with the programme encompassing interest, penalties, and fines related to qualifying tax liabilities.

To qualify, taxpayers must settle the principal tax amount on or before December 31, 2026, for any outstanding principal tax incurred up to December 31, 2025. If a single payment is not feasible, taxpayers can apply for an Automatic Payment Plan via the iTax system. However, the entire outstanding principal tax must be paid by the deadline for eligibility.

In addition, taxpayers with unfiled tax returns are included in the programme. They are obligated to file all outstanding returns up to December 31, 2025, during the amnesty period. Those who file returns with no outstanding principal tax, known as nil returns, will automatically receive amnesty relief for late filing penalties. Taxpayers with outstanding principal tax but no other obligations will also qualify once their principal tax is fully paid by December 31, 2026.

Taxpayers without any outstanding principal tax for periods up to December 31, 2025, but possessing interest, penalties, or fines will automatically receive the amnesty without the need for application. Upon meeting all qualifying conditions, the amnesty will be automatically granted, the taxpayer's ledger updated, and an Amnesty Certificate and notification provided through the iTax system.