The Kenya Revenue Authority (KRA) has reintroduced its Tax Amnesty Programme, offering taxpayers a fresh opportunity to settle outstanding tax obligations without paying penalties, interest or fines.
In a statement on Thursday, July 3, KRA said the program was reintroduced under the Finance Act, 2026, and will run from July 1, 2026, to December 31, 2026.
The initiative provides a 100 percent waiver of penalties, interest and fines on eligible tax debts that accrued up to December 31, 2025, as part of the government’s efforts to ease the financial burden on taxpayers while encouraging voluntary tax compliance.
According to the taxman, the latest amnesty follows the success of the previous two tax amnesty programmes, which recovered KSh80.9 billion in principal tax payments while helping thousands of taxpayers regularise their tax affairs.
“The Kenya Revenue Authority (KRA) announces a tax amnesty programme to ease financial burdens for taxpayers. Reintroduced under the Finance Act, 2026, this initiative waives 100% of penalties, interest, and fines on tax debts accrued up to 31st December 2025. The amnesty window opens on 1st July 2026 and closes strictly on 31st December 2026,” stated KRA.
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KRA to Automatically Waive Penalties and Interest for Eligible Taxpayers
KRA announced that taxpayers who had fully paid their principal tax liabilities by December 31, 2025, will automatically receive a waiver of any outstanding penalties and interest.
“Taxpayers who cleared their principal taxes by 31st December 2025 automatically qualify for a full waiver on outstanding interest and penalties. No formal application is required,” said KRA
The tax agency also announced relief for taxpayers who owe no principal tax but have accrued late-filing penalties.
Such taxpayers will automatically qualify for a waiver once they submit all outstanding tax returns.
Options for Taxpayers with Outstanding Principal Tax
According to the taxman, taxpayers who still owe principal taxes accrued before 2026 can benefit from the amnesty in two ways.
Those able to pay the full outstanding principal amount during the amnesty period will immediately receive a waiver of all related penalties, interest, and fines.
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Meanwhile, taxpayers unable to make a lump-sum payment may apply for a structured payment plan through the KRA iTax system.
However, KRA said all principal tax under the payment arrangement must be fully settled by December 31, 2026, for the taxpayer to qualify for the waiver.
Debts from 2026 Not Covered
The Authority clarified that the amnesty only applies to tax liabilities that arose on or before December 31, 2025.
Any tax obligations arising from January 1, 2026, onwards are excluded from the programme, meaning the principal tax, penalties and interest remain fully payable under the law.
“Tax liabilities arising on or after 1st January 2026 do not qualify. All principal taxes, penalties and interest remain fully due,” wrote KRA.
For taxpayers involved in active tax disputes or court cases, KRA encouraged them to utilize its Alternative Dispute Resolution (ADR) framework to resolve outstanding principal tax issues and become eligible for the amnesty benefits.
The Authority urged taxpayers to take advantage of the six-month window before the programme closes on December 31, noting that the initiative forms part of the government’s efforts to promote voluntary tax compliance and improve revenue collection while easing the burden on taxpayers with tax debts.
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