Kenya Offers Complete Waiver on Outstanding Tax Penalties Until December
Nairobi, 25 August 2026
The Kenya Revenue Authority has launched an amnesty offering a 100% waiver on historical tax penalties and interest, provided taxpayers clear their principal debts by 31 December 2026.
Understanding Eligibility and Qualifying Criteria
The 2026 Tax Amnesty Programme, which officially commenced on 1 July 2026 under the Finance Act 2026, provides a critical window for taxpayers to regularise their tax affairs before it concludes on 31 December 2026 [1][4][5]. The relief grants a 100 per cent waiver on eligible interest, penalties, and fines linked to tax liabilities accrued up to 31 December 2025 [1][2][5]. It is vital for taxpayers to note that any liabilities, including standard interest and penalties, arising from 1 January 2026 onwards are strictly excluded from this programme and remain subject to normal tax laws [1][2][5].
Understanding Eligibility and Qualifying Criteria
Taxpayers fall into three distinct categories under this amnesty scheme. First, those who fully settled their principal tax liabilities on or before 31 December 2025 do not need to apply; their outstanding penalties and interest are automatically waived through the iTax system [1][4][5]. Second, individuals and businesses with no outstanding principal tax but with accumulated late-filing penalties can secure an automatic waiver simply by filing all their missing returns [1][4][5]. Third, taxpayers who still owe principal tax must clear the entire outstanding principal balance within the amnesty window to trigger the penalty waiver [1][3][4].
Step-by-Step Guide to Accessing the Amnesty
To access this service, eligible taxpayers must log into the official KRA iTax portal at itax.kra.go.ke or use the eCitizen web portal [3][5]. Applications for the waiver are processed under the “Debt and Enforcement” section of the iTax platform [5]. For taxpayers unable to settle their principal tax liabilities in a single lump sum, the KRA allows them to apply for a structured payment plan through iTax [1][4]. However, to qualify for the waiver, all principal tax obligations under the approved plan must be fully cleared by the 31 December 2026 deadline [1][4][5]. Payment plans initiated at the start of the programme in July 2026 are capped at a maximum of six instalments [4].
Step-by-Step Guide to Accessing the Amnesty
Taxpayers currently involved in active tax disputes at the Tax Appeals Tribunal or in court are also eligible for relief [1][5]. These individuals can utilise the KRA’s Alternative Dispute Resolution (ADR) framework to settle their principal tax liabilities, which subsequently unlocks the 100 per cent waiver on accrued penalties and interest [1][5]. Once the qualifying principal tax is fully settled, the iTax system automatically processes the waiver and generates an amnesty certificate, which can be downloaded from the “Taxpayer Profile” under “Debt and Enforcement” or received via the taxpayer’s registered email [4].
System Precautions and Timely Action
The KRA has urged taxpayers to audit their iTax accounts early to resolve any discrepancies, warning against a last-minute rush [1][2]. The authority has specifically acknowledged potential system bugs where penalties or fines may erroneously continue to appear on payment pages even after qualifying amounts have been reversed in the ledger [4]. In such circumstances, taxpayers are advised to manually edit the payment fields on iTax to ensure they pay only the outstanding principal tax amount [4]. Taxpayers are also encouraged to engage their local tax service offices to fast-track return amendments, assessments, and dispute resolutions to ensure eligibility before the end of the year [5].
System Precautions and Timely Action
On Tuesday, 25 August 2026, the KRA renewed its public call for compliance, reminding taxpayers that taking advantage of this window is essential for securing a clean financial record [1][2]. This programme represents a unique opportunity to clear historical tax burdens, especially as the Finance Act 2026 has introduced structured, staggered filing deadlines starting on 1 January 2027 [5]. Under these upcoming rules, nil returns must be filed by 31 January, PAYE-salaried employees must file by 30 April, self-assessment individuals have four months after their financial year-end, and companies have six months after their year-end to file [5].