Taxpayers with old KRA debts get fresh window to clear interest and penalties

The Kenya Revenue Authority (KRA) has reminded taxpayers that its 2026 Tax Amnesty Programme is now in effect, giving eligible taxpayers an opportunity to have qualifying interest, penalties and fines waived if they meet the conditions set out under the law.

The programme took effect on July 1, 2026, and will run until December 31, 2026.

In a public notice issued on Friday, September 4, KRA said the amnesty covers interest, penalties and fines relating to tax liabilities for periods up to December 31, 2025.

However, the waiver is subject to specific conditions, meaning taxpayers must take the required steps before the December deadline to qualify.

Taxpayers who have outstanding principal taxes relating to periods up to December 31, 2025 can qualify for the amnesty by paying the full qualifying principal tax by December 31, 2026.

For taxpayers unable to settle their qualifying principal tax in a single payment, KRA said they may apply for an Automatic Payment Plan through iTax.

The payment plan does not change the final deadline for benefiting from the amnesty.

KRA has specified that the entire outstanding qualifying principal tax must still be fully paid by December 31, 2026 for the taxpayer to benefit from the waiver of the applicable interest, penalties and fines.

The amnesty also covers taxpayers who have unfiled tax returns for periods ending on or before December 31, 2025.

KRA has directed such taxpayers to file all outstanding returns during the amnesty period.

Taxpayers who file outstanding returns showing no principal tax liability, commonly referred to as Nil returns, will automatically qualify for amnesty on the applicable late-filing penalties.

However, taxpayers whose outstanding returns show principal taxes payable must fully settle those principal taxes by December 31, 2026 to qualify for the amnesty.

The programme therefore provides different routes depending on whether a taxpayer has outstanding principal tax, unfiled returns or only accumulated interest, penalties and fines.

Taxpayers who have no outstanding principal tax for periods up to December 31, 2025, but still have outstanding interest, penalties or fines, do not need to make an application for the amnesty.

KRA said such taxpayers qualify automatically.

Once the applicable conditions have been fulfilled, KRA will automatically grant the amnesty and update the taxpayer's ledger.

The authority said taxpayers will then be able to access an Amnesty Certificate and notification through the iTax system.

This means taxpayers do not need to make a separate application where they have no outstanding qualifying principal tax but have interest, penalties or fines covered by the programme.

For taxpayers with outstanding principal tax, the key requirement is full payment of the qualifying principal amount by December 31, 2026.

Those with unfiled returns must submit all outstanding returns during the amnesty period, while taxpayers whose returns generate principal tax liabilities must ensure those taxes are fully paid before the deadline.

Taxpayers using an Automatic Payment Plan through iTax must likewise ensure that the entire qualifying principal tax is settled within the amnesty period.