KRA Announces Tax Amnesty to Waive Penalties and Interest; How to Apply 

The Kenya Revenue Authority (KRA) has launched a new tax amnesty programme under the Finance Act, 2026, giving taxpayers an opportunity to clear old tax debts without paying penalties, interest or fines.

The amnesty took effect on July 1, 2026, and will run until December 31, 2026.

The programme applies to tax liabilities that accrued up to December 31, 2025.

Taxpayers whose principal tax had already been fully paid by December 31, 2025, will automatically receive a 100% waiver on any outstanding penalties and interest. No application is required.

Those with late filing penalties will also qualify for an automatic waiver once they submit all outstanding tax returns.

Requirements and How to Apply

Taxpayers with unpaid principal tax are required to pay the entire principal amount during the amnesty period, after which they will  receive an immediate waiver on the related penalties and interest.

Those who cannot pay the full principal amount are advised to apply for a structured payment plan through the KRA iTax portal.

However, all principal taxes under the agreement must be cleared by December 31, 2026.

“Tax liabilities arising on or after 1st January 2026 do not qualify. All principal taxes, penalties and interest remain fully due,” the statement read in part.

“Taxpayers in active litigation should utilise the KRA Alternative Dispute Resolution (ADR) framework to settle principal amounts and unlock amnesty benefits.”

According to KRA, the amnesty programme is aimed at easing the financial burden on taxpayers while encouraging voluntary tax compliance.

The authority noted that the previous two tax amnesty programmes helped recover Ksh80.9 billion in principal tax payments while regularising thousands of taxpayers.