KRA waives Ksh140B in tax penalties and interest
By Francis Muli, March 3, 2025The Kenya Revenue Authority (KRA) has announced a Ksh140 billion waiver in penalties, interest and fines under the ongoing Tax Amnesty Program.
In a statement on Monday, March 3, 2025, the taxman announced that the programme, launched on December 27, 2024, has benefited over 1.9 taxpayers already.
“With over 1.9 million taxpayers already benefiting, this initiative, launched on 27th December 2024, continues to provide relief to those who qualify.
The Amnesty program re-introduced in the Tax Procedures (Amendment) Act, 2024 provides a crucial opportunity for taxpayers to clean their tax records, offering a waiver on penalties, interest and fines for tax debts accrued up to 31st December 2023, underscoring KRA’s commitment to helping taxpayers resolve past tax issues without facing the full financial burden. The program runs until 30th June 2025,” KRA stated.
The taxman says since the re-launch of the Tax Amnesty program, KRA has successfully collected Ksh4 billion in principal tax payments.
The programme entails an automatic waiver where taxpayers who have paid their principal taxes due before December 31, 2023, automatically qualify for a waiver of related penalties and interest and need not make an application.
To qualify for the programme, taxpayers with outstanding principal taxes up to December 31, 2023, must apply via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by June 30, 2025.
Tax debts arising from January 1, 2024, and beyond do not qualify for amnesty. All penalties, interest, and principal taxes for debts incurred after this date remain payable.
“Taxpayers involved in ongoing tax disputes are encouraged to resolve the disputes through the Alternative Dispute Resolution (ADR) to ensure a swift resolution before the amnesty deadline. This initiative is a part of KRA’s broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts. It offers a unique chance to settle tax matters on favourable terms and to move forward on a clean slate,” KRA added.
KRA has also encouraged eligible taxpayers to take full advantage of the amnesty before the June 30, 2025.