KRA Announces Six-Month Tax Amnesty Programme

The 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 per cent waiver on penalties, interest and fines related to tax debts that accrued up to December 31, 2025, provided they meet the eligibility requirements.

Taxpayers with unpaid principal taxes dating back to before January 2026 can also benefit by settling the outstanding principal amount in full during the amnesty period. Once the payment is made, the corresponding penalties, interest and fines will be waived.

KRA said the amnesty provides a window for eligible taxpayers to regularise their tax records, with qualifying debts receiving a full waiver of penalties, interest and fines once the set conditions are met.

Taxpayers whose only outstanding liability is a late filing penalty, such as the common KSh2,000 penalty for filing returns after the deadline, will also qualify, provided they have since filed all outstanding returns and have no unpaid principal tax.

According to KRA, eligible waivers will be applied automatically, meaning taxpayers will not need to submit a separate application. However, the authority has advised taxpayers to log into their iTax accounts and monitor their tax ledgers to confirm that the waiver has been reflected during the amnesty period.