KRA tax waiver: Deadlines, conditions and key requirements explained
By Mustafa Juma, July 4, 2026The Kenya Revenue Authority (KRA) has rolled out a new six-month tax amnesty programme, offering taxpayers an opportunity to clear historical tax debts without paying penalties, interest or fines, provided they meet a number of conditions.
The programme, introduced under the Finance Act, 2026, officially took effect on July 1, 2026, and will remain open until December 31, 2026. It is expected to benefit individuals, businesses and organisations with outstanding tax liabilities accumulated before the end of 2025.
Below is a breakdown of who qualifies, how the waiver works, and what taxpayers need to do before the deadline.
What is the tax amnesty?
The tax amnesty is a government initiative allowing eligible taxpayers to have 100 per cent of penalties, interest and certain fines waived on qualifying tax debts.
However, the waiver does not erase the principal tax owed. Taxpayers with outstanding principal taxes must still settle those amounts within the amnesty period to benefit from the relief.
According to KRA, the programme aims to reduce the financial burden on taxpayers while encouraging voluntary compliance.
Who qualifies?
The amnesty applies to taxpayers with tax debts that accrued up to December 31, 2025.
There are two categories of beneficiaries:
1. Taxpayers who have already cleared their principal tax
Those who have fully paid their principal tax liabilities by December 31, 2025, will automatically receive a waiver on all related penalties and interest.
No application is required in such cases, as the waiver will be processed automatically through the KRA system.
2. Taxpayers with outstanding principal tax
Taxpayers who still owe principal tax for qualifying periods must:
- Apply for the amnesty through the iTax system.
- Declare the outstanding tax.
- Pay the principal tax within the amnesty period.
Once the principal tax is settled, KRA will waive the associated penalties, interest and eligible fines.
What debts qualify?
The programme covers tax liabilities accrued up to December 31, 2025.
It includes taxes administered under Kenya’s domestic tax laws, provided the liabilities meet the conditions set out under the Finance Act.
Tax obligations arising after January 1, 2026, are not covered by the amnesty and must be paid in full together with any applicable penalties or interest.
Key deadline
Perhaps the most important date for taxpayers is December 31, 2026, the final day to benefit from the tax amnesty.
KRA has emphasised that applications and settlement of qualifying principal tax liabilities must be completed before the deadline.
Once the window closes, normal enforcement measures, including recovery proceedings and the imposition of penalties and interest, will resume for outstanding tax debts.
How to apply
Eligible taxpayers can submit their applications through the iTax portal by:
- Logging into their iTax account.
- Selecting the Tax Amnesty option.
- Completing the application.
- Paying the outstanding principal tax where applicable.
Taxpayers experiencing difficulties can also seek assistance at KRA service centres across the country.
Why KRA introduced the programme
The latest amnesty follows previous tax relief programmes that KRA says helped thousands of taxpayers regularise their tax affairs while improving revenue collection.
According to the authority, earlier tax amnesty programmes generated more than Ksh80.9 billion in principal tax payments while enabling taxpayers to clear historical debts without the burden of accumulated penalties and interest.
KRA says the new initiative seeks to build on that success by encouraging more individuals and businesses to voluntarily comply with tax obligations instead of facing costly enforcement action.
What happens after December 31?
Once the six-month amnesty period expires, taxpayers who fail to regularise qualifying tax debts will lose the opportunity to benefit from the waiver.
KRA has warned that unpaid taxes will continue attracting penalties and interest in accordance with the law, while enforcement measures, including debt recovery processes, may be initiated against defaulting taxpayers.
The authority has urged eligible taxpayers not to wait until the last minute, noting that the programme offers a one-time opportunity to clean up tax records, reduce outstanding liabilities and regain compliance before the end-of-year deadline.