Taxman eyes more billions from tax amnesty

Kenya Revenue Authority (KRA) has announced that the amnesty programme will see taxpayers get waivers of up to 100 per cent on penalties, interest, and fines on tax debts accrued up to December 31, 2025.

The post-2025 debts are not included.

Additionally, the ongoing tax disputes are excluded according to a statement from the Commissioner General Adan Mohamed.

“Taxpayers in active litigation should utilise the KRA Alternative Dispute Resolution (ADR) framework to settle principal amounts and unlock amnesty benefits,” reads the statement.

The amnesty will run for six months from July 1, 2026. The taxman called on taxpayers to utilise this period to avoid a last-minute rush as the window will close strictly on December 31, 2026.

“This initiative is part of the government's broader commitment to foster voluntary tax compliance and provide financial relief,” the statement reads in part.

KRA says the re-introduction of this amnesty programme is based on previous similar initiatives that were a success in bumping up revenue collection and compliance.

“This builds on the success of the previous two amnesty cycles, which successfully recovered Sh80.9 billion in principal tax payments while regularising thousands of taxpayers,” the statement says.

Projected total revenue in the current financial year (2026/2027) is Sh3.63 trillion. Out of this, the ordinary revenue target, which falls in the ambit of KRA, is Sh3 trillion.

The programme will see automatic waivers for paid principal as taxpayers who cleared their principal taxes by December 31, 2025 automatically qualify for a full waiver on outstanding interest and penalties.

“No formal application is required,” says the taxman.

Taxpayers with no principal tax due but facing late filing penalties will also receive an automatic waiver once all outstanding returns are fully filed.

There is also immediate amnesty via lump-sum settlement, as taxpayers who pay their outstanding pre-2026 principal tax in full during this period will instantly receive a waiver on the corresponding penalties and interest.

“Taxpayers unable to make a lump-sum payment can apply for a structured payment plan via KRA iTax. All principal taxes under the plan must be fully cleared by December 31, 2026 to qualify for the waiver,” says the taxman.