KRA tax amnesty: What it means, who qualifies and conditions for relief
By Sharon Atieno, July 4, 2026The Kenya Revenue Authority (KRA) recently announced a tax amnesty giving taxpayers a six-month window to clear their debts. The period is meant to allow defaulters to enter the tax compliance bracket in the country.
The amnesty is designed to help taxpayers regularise their tax affairs by waiving penalties and interest on eligible tax debts, provided they meet the prescribed conditions within the stipulated timelines.
Below is what taxpayers need to know.
What is the tax amnesty?
According to KRA, a tax amnesty is a limited-time relief programme targeting a specific category of taxpayers to address outstanding tax obligations while encouraging voluntary compliance.
The programme was introduced under Section 37E of the Tax Procedures (Amendment) Act, 2024, which extended tax amnesty on penalties, interest and fines relating to unpaid taxes that accrued up to December 31, 2023.
The initiative seeks to enable taxpayers to clear eligible tax debts without the additional financial burden of accumulated penalties and interest.
Who qualifies?
KRA says a taxpayer qualifies for the amnesty if:
- They have no outstanding principal tax but still owe penalties, interest, or fines relating to tax periods up to December 31, 2025.
- They have outstanding principal tax accrued up to December 31, 2025, provided they commit to fully paying the principal tax within the stipulated period.
Conditions for relief
Taxpayers with outstanding principal tax must first apply for the amnesty through the KRA iTax platform and propose a payment plan.
By accepting the terms and conditions on the online application, they undertake to settle the outstanding principal tax within the period provided under the programme in order to benefit from the waiver.
KRA has clarified that no supporting documents are required during the application process.
Applications can be made by logging into the iTax portal and selecting the Amnesty Application option under the Debt and Enforcement menu.
Eligible taxpayers can also access the application through links sent via email or SMS or seek assistance at the nearest KRA Tax Service Office or Huduma Centre.
How the waiver works
The authority says taxpayers who have already settled all principal taxes relating to eligible periods will receive an automatic waiver of penalties and interest.
However, taxpayers with unpaid principal tax must first obtain approval for their amnesty application and honour their agreed payment plan before qualifying for the relief.
Failure to comply with the agreed payment terms may result in the taxpayer losing the benefits of the amnesty programme.
Comes after new six-month tax amnesty
KRA’s guidance comes days after Treasury Cabinet Secretary John Mbadi announced a six-month tax amnesty under the Finance Act, 2026, targeting taxpayers with tax arrears accumulated up to December 2025.
The programme, which runs from July 1, 2026, to December 31, 2026, allows eligible taxpayers to clear only the principal tax owed, with accumulated penalties and interest being waived.
Mbadi said the measure is intended to help taxpayers who have struggled to meet their tax obligations while improving voluntary compliance and boosting government revenue collection without imposing additional financial pressure on individuals and businesses.