KRA tax amnesty explained as taxpayers face December 31 deadline

Kenyan taxpayers have a December 31, 2026 deadline to take advantage of the Kenya Revenue Authority's (KRA) 2026 Tax Amnesty Programme. This program waives penalties, interest, and fines on qualifying tax debts accrued by December 31, 2025. However, taxpayers must still pay the principal tax amount by the deadline. The program does not cover principal tax debts for periods beginning January 1, 2026.

To qualify for the amnesty, taxpayers with outstanding principal tax must settle it by the deadline. They can choose to pay the entire amount in a lump sum or apply for a structured payment plan through iTax, running up to six instalments. Those with disputed tax debts can use Alternative Dispute Resolution to agree on the principal tax payable before making payment.

KRA has identified some iTax issues, such as certain withholding tax transactions and missing PAYE credits. Taxpayers can amend their payment registration numbers to ensure payment of only the principal tax. Upon processing the waiver, KRA sends an amnesty certificate to the taxpayer's registered iTax email, which can also be accessed through iTax. Taxpayers should complete their payments before the deadline to avoid losing the relief on unpaid qualifying debt and to prevent further penalties and interest from applying.