The Kenya Revenue Authority (KRA) has launched a tax amnesty programme aimed at easing the financial burden on taxpayers by waiving penalties, interest, and fines on outstanding tax debts accrued up to 31st December 2023.
This initiative, which runs until 30th June 2025, provides an opportunity for individuals and businesses to clean their tax records and avoid hefty financial penalties.
What the tax amnesty covers
The tax amnesty programme is part of the Tax Procedures (Amendment) Act, 2024, designed to encourage voluntary compliance.
KRA has waived a total of Sh140 billion in penalties and interest, allowing taxpayers to focus on settling their principal tax amounts.
KRA has emphasised that the initiative is a major step in supporting compliance and resolving past tax issues without excessive financial strain.
According to the tax authority, over 1.9 million taxpayers have already benefited from the programme, demonstrating its wide-reaching impact.
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Who qualifies for the amnesty?
KRA has outlined clear eligibility criteria for taxpayers wishing to benefit from the amnesty:
Automatic waiver for those who paid principal taxes
Taxpayers who settled their principal tax debts before 31st December 2023 will automatically qualify for a waiver on the related penalties and interest. These taxpayers do not need to submit an application.Application required for unpaid principal taxes
Taxpayers with outstanding tax debts up to 31st December 2023 must apply for the waiver via the iTax system. Additionally, they must submit a structured payment plan for settling their principal tax amount before 30th June 2025.Exclusions
Tax debts arising after 1st January 2024 are not covered under the amnesty. Any penalties, interest, or principal tax amounts incurred beyond this date must be paid in full.
How to apply for tax amnesty
Taxpayers who qualify for the amnesty must follow a structured application process through iTax, KRA’s online tax platform. The process involves:
Logging into the iTax system using their PIN credentials.
Selecting the Tax Amnesty Application option.
Declaring outstanding principal tax debts accrued up to 31st December 2023.
Submitting a structured payment plan indicating how they intend to clear their outstanding taxes by 30th June 2025.
Receiving confirmation from KRA on the successful application and waiver approval.
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Taxpayers are encouraged to apply as soon as possible to take full advantage of the programme.
Encouragement to resolve tax disputes
KRA has also advised taxpayers engaged in ongoing tax disputes to resolve them swiftly through Alternative Dispute Resolution (ADR).
According to KRA, 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.
The ADR mechanism is designed to facilitate a fair settlement while avoiding prolonged court processes.
Success of the programme so far
According to KRA, since the re-launch of the tax amnesty programme, KRA has successfully collected Sh4 billion in principal tax payments.
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With the deadline for the tax amnesty set for 30th June 2025, eligible taxpayers are advised to apply early to avoid last-minute rush and potential processing delays.