Explainer: What taxpayers need to know about KRA’s tax amnesty before the deadline
By Sharon Atieno, July 6, 2026Thousands of taxpayers have until December 31, 2026, to take advantage of the Kenya Revenue Authority’s (KRA) tax amnesty programme, which offers a waiver on penalties, interest and eligible fines for qualifying tax debts.
The six-month programme, which took effect on July 1, 2026, is expected to help individuals, businesses and organisations regularise their tax affairs while improving voluntary compliance.
Below is what taxpayers need to know before the deadline.
What is the tax amnesty?
The tax amnesty is a government relief programme introduced under the Finance Act, 2026, allowing eligible taxpayers to clear historical tax debts without paying accumulated penalties and interest.
However, the waiver does not eliminate the principal tax owed. Taxpayers must settle the principal amount to qualify for the relief.
Treasury Cabinet Secretary John Mbadi said the initiative is aimed at helping taxpayers who have struggled to meet their obligations while boosting government revenue collection.
Who qualifies?
According to KRA, the programme targets taxpayers with tax liabilities that accrued up to December 31, 2025.
There are two categories of beneficiaries:
- Taxpayers who had already cleared their principal tax by December 31, 2025, automatically qualify for a waiver on related penalties and interest. No application is required.
- Taxpayers who still owe principal tax must apply through the KRA iTax system, declare the outstanding amount and settle the principal tax before the deadline to enjoy the waiver.
How do you apply?
Eligible taxpayers with outstanding principal tax are required to:
- Log into the iTax portal.
- Select the Tax Amnesty option.
- Submit the application.
- Propose and honour a payment plan where applicable.
- Pay the outstanding principal tax before December 31, 2026.
KRA says no supporting documents are required during the application process. Taxpayers can also seek assistance at KRA Tax Service Offices or Huduma Centres.
What happens if you miss the deadline?
Taxpayers who fail to regularise their eligible tax debts before December 31, 2026, will lose the opportunity to benefit from the waiver.
KRA has warned that outstanding tax debts will continue attracting penalties and interest after the deadline, while enforcement measures, including debt recovery proceedings, may be initiated against defaulters.
Programme targets voluntary compliance
The tax amnesty follows Treasury’s announcement of a six-month relief programme running from July 1 to December 31, 2026, allowing taxpayers to clear only the principal tax while accumulated penalties and interest are waived. Treasury CS John Mbadi urged eligible taxpayers to take advantage of the window, saying it is intended to ease the burden on those who have struggled to meet their tax obligations while encouraging voluntary compliance and improving revenue collection.
KRA has also said the latest programme builds on previous tax amnesty initiatives that generated more than Ksh80.9 billion in principal tax payments, helping thousands of taxpayers regularise their tax affairs without the burden of accumulated penalties and interest. The authority is urging taxpayers not to wait until the last minute, describing the initiative as a one-time opportunity to clean up tax records and regain compliance before the end-of-year deadline.