The Kenya Revenue Authority (KRA) has announced a significant tax relief under its ongoing Tax Amnesty Program, waiving Ksh 140 billion in penalties, interest, and fines.
This initiative is aimed at encouraging tax compliance by allowing taxpayers to clear their principal tax liabilities without additional financial burdens.
Automatic Waiver for Fully Paid Taxes
In a statement released on Monday, March 3, KRA confirmed that taxpayers who settled their principal tax obligations before December 31, 2023, will automatically qualify for the waiver. No separate application is required for this category of taxpayers.
Application Process for Outstanding Taxes
For those with unpaid principal taxes as of December 31, 2023, KRA has provided an avenue to apply for the waiver through the iTax system. Taxpayers must submit a structured payment plan, ensuring full settlement of the outstanding principal amount by June 30, 2025.
Ghanaians to Pay 21% More for AWS Services Under New Tax Policy
Limitations of the Amnesty Program
KRA clarified that tax debts incurred from January 1, 2024, onward are not eligible for the waiver. Any penalties, interest, or unpaid taxes arising from this period will remain payable under the standard tax regime.
Government’s Vision for Tax Compliance
The Tax Amnesty Program, introduced under President William Ruto’s administration, aims to benefit over 1.9 million taxpayers. Officially launched on December 27, 2024, the initiative is set to run until June 30, 2025.
According to the Tax Procedures (Amendment) Act, 2024, the amnesty provides a structured opportunity for taxpayers to rectify past tax issues without facing excessive financial penalties. The move underscores KRA’s commitment to promoting voluntary compliance and easing the financial strain on taxpayers.
Economic Impact and Taxpayer Encouragement
President Ruto has emphasized that the amnesty aligns with his administration’s strategy for fostering a fair and inclusive economy. He urged taxpayers to take advantage of the program, which seeks to alleviate financial burdens and promote economic participation.
“We are offering taxpayers an opportunity to settle their principal tax obligations without penalties or interest. I encourage all eligible individuals and businesses to seize this chance,” Ruto stated in 2023.
Success of the Program So Far
Since its relaunch, the Tax Amnesty Program has already facilitated the collection of Ksh 4 billion in principal tax payments. KRA views this initiative as part of its broader strategy to enhance voluntary tax compliance and offer much-needed relief to businesses and individuals dealing with accumulated tax debts.
“This initiative represents a crucial step in resolving past tax obligations under favorable terms, allowing taxpayers to move forward with a clean slate,” KRA stated.
As the June 30, 2025, deadline approaches, KRA continues to urge eligible taxpayers to take advantage of the amnesty and ensure full compliance with tax regulations.
