KRA Waives Ksh140 billion in Tax Penalties

The Kenya Revenue Authority (KRA) has waived Kshs. 140 billion in penalties, interest, and fines under its ongoing Tax Amnesty Program to ease the financial burden on taxpayers.

In a statement dated Monday, March 3, KRA announced that the initiative, launched on December 27, 2024, has already benefited over 1.9 million taxpayers, offering them an opportunity to regularize their tax compliance and start afresh.

“The Kenya Revenue Authority (KRA) is offering taxpayers an incredible opportunity to ease their tax burdens, having waived over Kshs. 140 billion in penalties, interest, and fines under the ongoing Tax Amnesty Program. With over 1.9 million taxpayers already benefiting, this initiative continues to provide relief to those who qualify,” read the statement.

According to KRA, the Tax Amnesty Program, reintroduced through the Tax Procedures (Amendment) Act, 2024, aims to help taxpayers resolve outstanding tax debts accrued up to December 31, 2023.

KRA Waives Kshs. 140 billion in Tax Penalties and Interest

By waiving penalties and interest, the Authority seeks to provide relief to individuals and businesses struggling with past tax obligations.

The program, which runs until June 30, 2025, underscores KRA’s commitment to fostering voluntary compliance and reducing financial strain on taxpayers.

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Since its relaunch, the initiative has already collected Kshs. 4 billion in principal tax payments, highlighting its significant impact and the willingness of taxpayers to take advantage of the amnesty.

Key Features of the Tax Amnesty Program

• Automatic Waiver: Taxpayers who settled their principal taxes due before December 31, 2023, automatically qualify for a waiver on related penalties and interest, with no application required.
• Application Requirement: Taxpayers with outstanding principal taxes up to December 31, 2023, must apply through the iTax system and submit a structured payment plan to clear their debts by June 30, 2025.
• Exclusions: Tax debts incurred from January 1, 2024, onward do not qualify for amnesty. Penalties, interest, and principal taxes for debts accrued after this date remain payable.

Additionally, KRA urged taxpayers with ongoing tax disputes to resolve them through the Alternative Dispute Resolution (ADR) mechanism before the amnesty deadline to ensure a swift resolution.

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 Further, the Authority is encouraging eligible taxpayers to take advantage of the amnesty before the June 30, 2025, deadline to avoid missing out on this relief.

“Eligible taxpayers are urged to act promptly in order to take full advantage of this amnesty before the 30th June 2025 deadline,” the Authority urged.

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