The Kenya Revenue Authority (KRA) has announced a major tax relief program, waiving Kshs. 140 billion in penalties and interest as part of its ongoing Tax Amnesty Program. This initiative, which has already benefited 1.9 million taxpayers, aims to provide financial reprieve and encourage compliance among businesses and individuals struggling with outstanding tax obligations.
The KRA tax amnesty was reintroduced through the Tax Procedures (Amendment) Act, 2024, and applies to penalties, interest, and fines on tax debts accumulated up to December 31, 2023. However, the principal tax amount remains payable. Taxpayers have until June 30, 2025, to take advantage of this waiver by clearing outstanding principal taxes or applying for a structured repayment plan via KRA’s iTax system.
The move by KRA is expected to ease the financial burden on taxpayers while reinforcing voluntary compliance. Since the relaunch of the amnesty program in December 2024, the authority has collected Kshs. 4 billion in principal tax payments, underscoring the program’s impact.
“This tax amnesty provides a crucial opportunity for taxpayers to clean their records and resolve past tax issues without the weight of penalties and interest,” KRA stated in its press release. The amnesty program is part of KRA’s broader strategy to increase tax compliance, enhance revenue collection, and provide a fresh start for businesses burdened by historical tax debts.
Under Kenya’s Tax Amnesty Program, taxpayers who cleared their principal tax obligations by December 31, 2023, are automatically granted a waiver on all related penalties and interest without the need for an application.
For those with outstanding principal tax amounts, the amnesty requires them to apply through the iTax system and submit a structured repayment plan, with full settlement due by June 30, 2025. However, the program does not cover tax debts incurred from January 1, 2024, onwards, meaning all penalties, interest, and principal taxes from this period remain payable.
The initiative aims to encourage voluntary compliance and provide relief to taxpayers burdened by past debts while ensuring the integrity of Kenya’s tax system. The KRA has also urged taxpayers involved in ongoing tax disputes to seek resolution through the Alternative Dispute Resolution (ADR) mechanism before the amnesty deadline. The authority hopes this initiative will expedite tax dispute settlements and encourage compliance.
The tax amnesty is expected to boost economic activity by reducing the tax burden on businesses and individuals, allowing them to redirect resources toward investment and expansion. Experts say this move aligns with global best practices, where tax amnesty programs have been used successfully to enhance revenue collection and promote economic stability.
Eligible taxpayers are encouraged to act promptly by visiting the KRA website and using the iTax platform to apply for the amnesty program. The deadline for applications and full settlement of outstanding taxes is June 30, 2025. The KRA has reaffirmed its commitment to assisting taxpayers throughout the amnesty period and ensuring that the process is smooth and efficient.
The tax amnesty program is a crucial intervention for Kenyan taxpayers seeking relief from accumulated tax burdens. By waiving Kshs. 140 billion in penalties and interest, the KRA is promoting compliance while offering a second chance to businesses and individuals looking to regularize their tax affairs.
With the June 30, 2025, deadline fast approaching, taxpayers are advised to take advantage of this opportunity to avoid additional financial penalties and secure a clean tax record.
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