- New tax relief programme offers taxpayers an opportunity to settle outstanding principal taxes while benefiting from a waiver of penalties and interest before the end of 2026.
- Taxpayers who had already settled the principal tax by the end of 2025 will automatically receive a waiver of outstanding penalties and interest.
- Those with unpaid principal tax can still qualify by paying the original tax amount before 31 December 2026.
- Taxpayers unable to make a lump-sum payment may apply for an approved payment arrangement through KRA’s iTax platform, provided all payments are completed before the deadline.
- Corporate Income Tax
- Value Added Tax (VAT)
- Pay As You Earn (PAYE)
- Withholding Tax
- Turnover Tax
- bidding for government contracts;
- securing licences and permits;
- onboarding with corporate clients;
- accessing certain financial services; and
- demonstrating regulatory compliance.
- reviewing outstanding tax periods;
- separating principal tax from penalties and interest;
- confirming which liabilities qualify for the waiver;
- filing any outstanding returns; and
- arranging payment plans where immediate settlement is not possible.
Kenya Launches Fresh Tax Amnesty. The Kenyan government has reopened a nationwide tax amnesty programme aimed at helping businesses and individual taxpayers regularise outstanding tax liabilities while improving voluntary compliance and strengthening domestic revenue collection.
The amnesty, which took effect on 1 July 2026 under the Finance Act 2026, allows eligible taxpayers to clear historical tax debts by paying only the principal tax owed. In return, penalties, interest and fines accrued on qualifying liabilities will be waived, provided the conditions of the programme are met.
The initiative forms part of the Kenya Revenue Authority’s (KRA) broader strategy to improve tax compliance without resorting immediately to enforcement measures, while giving businesses an opportunity to clean up their tax records before stricter compliance measures resume.
Kenya Launches Fresh Tax Amnesty: Relief Applies Only to Taxes Owed Before 2026
Unlike a blanket tax forgiveness programme, Kenya’s amnesty targets historical domestic tax liabilities.
Eligible taxpayers can benefit if they owe taxes that arose on or before 31 December 2025.
Under the programme:
However, the waiver does not extend to taxes that became due from 1 Janua ry 2026 onward.
SEE ALSO: Nigeria Pushes Digital Tax Overhaul to Strengthen Trust and Transparency
Customs Duties Remain Outside the Amnesty
One of the most important clarifications for importers and exporters is that the programme does not cover customs-related taxes governed by the East African Community Customs Management Act (EACCMA).
While domestic taxes, including:
these taxes may qualify for the waiver, customs duties and associated penalties remain payable under existing customs legislation.
Businesses engaged in cross-border trade are therefore encouraged to distinguish between domestic tax liabilities and customs obligations before assuming all outstanding debts qualify for relief.
Opportunity to Restore Tax Compliance Status
Beyond reducing historical liabilities, the amnesty could also help businesses regain their Tax Compliance Certificate (TCC) status.
In Kenya, a valid TCC is often required when:
Businesses seeking to obtain or renew their certificates must ensure outstanding returns have been filed and eligible taxes settled in accordance with KRA requirements.
Revenue Collection Through Voluntary Compliance
Rather than relying solely on audits and enforcement, the latest initiative reflects Kenya’s increasing emphasis on voluntary tax compliance.
Tax amnesties allow governments to recover revenue that might otherwise remain outstanding while encouraging taxpayers to re-enter the formal tax system without the full financial burden of accumulated penalties.
For Kenya, the programme also complements ongoing digital tax administration reforms centred on the iTax platform and broader efforts to improve taxpayer services.
What Businesses Should Consider
Tax professionals advise businesses to use the amnesty period to conduct a comprehensive review of their tax positions.
This includes:
Early action is particularly important, as taxpayers requiring instalment arrangements must ensure all payments are completed before 31 December 2026 to remain eligible.
Africa Tax Review Analysis
Kenya’s latest tax amnesty illustrates a growing trend across Africa, where revenue authorities are combining digital tax administration with targeted compliance incentives rather than relying exclusively on enforcement.
By forgiving penalties and interest while preserving the obligation to pay the principal tax, the government seeks to improve revenue collection without discouraging taxpayers from voluntarily regularising their affairs.
For businesses, the initiative presents an opportunity to strengthen compliance, restore access to Tax Compliance Certificates and reduce future enforcement risks.
For other African tax administrations, Kenya’s approach demonstrates how carefully designed amnesty programmes can broaden the tax base, improve taxpayer relationships and generate additional revenue while supporting long-term compliance.
