KRA Tax Amnesty 2026: How to clear tax debt and get 100% waiver on penalties

The Kenya Revenue Authority (KRA) has provided further guidance on the 2026 Tax Amnesty Programme, detailing how taxpayers can settle outstanding tax obligations and qualify for a full waiver of related interest, penalties and fines.

The programme, which took effect on July 1, 2026, runs until December 31, 2026 and covers qualifying tax liabilities for periods up to December 31, 2025.

Under the programme, taxpayers with outstanding principal tax can qualify for a 100 per cent waiver of penalties, interest and fines once the qualifying principal tax is settled within the amnesty period.

KRA says taxpayers who cannot pay the qualifying principal tax in one instalment can apply for an Automatic Payment Plan through the iTax system.

Taxpayers who owe principal tax relating to periods up to December 31, 2025 are eligible for the relief provided they clear the qualifying principal amount by December 31, 2026.

Those unable to make a one-off payment can use a structured payment arrangement through iTax.

KRA has, however, stressed that taxpayers using a payment plan must ensure the entire qualifying principal tax is fully paid by the December 31 deadline to receive the amnesty benefits.

A taxpayer can also have both qualifying and non-qualifying debts in the same payment plan. KRA says each category will continue to receive its respective treatment.

For taxpayers who can afford to settle their debt at once, KRA says making a full payment during the amnesty window results in an immediate waiver of the corresponding interest and penalties.

Taxpayers who have not filed returns for periods up to December 31, 2025 can also take advantage of the programme.

KRA says they should file all outstanding returns during the amnesty period.

Where the returns are filed and show no outstanding principal tax, such as nil returns, the taxpayer will automatically qualify for relief from the applicable late-filing penalties.

However, if filing the outstanding returns reveals principal tax due, the taxpayer must settle that principal amount by the deadline to qualify for the corresponding amnesty.

Taxpayers who had already settled all their principal tax by December 31, 2025 but still have interests and penalties do not need to make a separate application.

According to KRA, they automatically qualify for a 100 per cent waiver of the outstanding interest and penalties.

The tax authority says its system will update the taxpayer's ledger automatically.

The relief does not cover all tax debts as KRA says the amnesty applies to interest, penalties and fines relating to tax liabilities for periods up to December 31, 2025.

Taxpayers currently involved in tax disputes before a court or the Tax Appeals Tribunal can also seek to benefit from the programme.

KRA says those with active litigation should use its Alternative Dispute Resolution (ADR) framework to settle their agreed principal tax amount by December 31, 2026.

Once the agreed principal amount is settled through ADR, the applicable amnesty benefits will be unlocked.

For taxpayers unable to clear their qualifying principal tax in one payment, KRA has provided an iTax option for an Automatic Payment Plan.

The process begins by logging into iTax, selecting Payment, then choosing “Apply for Payment Plan (New)” and completing the required steps.

KRA says the payment plan can accommodate both qualifying and non-qualifying debts, although they will retain their separate treatment under the law.

Once the qualifying conditions have been met, the amnesty is automatically granted, the taxpayer's ledger is updated and an Amnesty Certificate and notification are made available through iTax.

KRA has urged taxpayers to complete the required actions before the end of the amnesty period.

For taxpayers with outstanding principal tax, this means ensuring the qualifying principal amount is fully settled by December 31, 2026.

Those with unfiled returns should file the outstanding returns within the same period, while taxpayers with disputes can use the ADR process to settle agreed amounts.