KRA Waives Over KSh60 Billion in Tax Penalties . Kenya Revenue Authority (KRA) has disclosed that more than KSh60 billion in penalties and interest has been waived under its 2026 Tax Amnesty Programme, as the authority intensifies efforts to recover outstanding tax revenue before the initiative closes on December 31.
The announcement, made on November 7, comes with KRA urging individuals and businesses with outstanding tax obligations to take advantage of the programme before the deadline. According to the authority, nearly one million taxpayers have already received information about the relief, which offers a 100 per cent waiver on eligible penalties, interest and fines.
The programme, which commenced on July 1, 2026, is designed to encourage taxpayers to regularise outstanding tax obligations while helping the government recover unpaid principal taxes. It was reintroduced through the Finance Act, 2026, and covers qualifying tax liabilities accrued on or before December 31, 2025.
KRA Waives Over KSh60 Billion in Tax Penalties: Tax Amnesty Targets Old Tax Debts and Unpaid Revenue
The 2026 initiative offers taxpayers an opportunity to clear accumulated tax liabilities without having to bear the additional financial burden of eligible penalties and interest.
However, the relief does not cancel the original tax obligation. Taxpayers with outstanding principal tax must settle the full amount by December 31, 2026, to qualify for the waiver. Those who have already paid their principal tax for the qualifying period but still have outstanding penalties and interest are eligible for automatic relief.
The programme also covers taxpayers with outstanding returns. Individuals and businesses that have not filed returns for periods up to December 2025 are required to submit them within the amnesty window. Those filing nil returns with no outstanding principal tax can qualify for a waiver of applicable late-filing penalties.
KRA has also provided an option for taxpayers who cannot settle their outstanding principal tax in one payment. They may apply for a structured payment plan through the iTax portal, provided the entire qualifying principal tax is paid by the December deadline.
Government Revenue Remains the Bigger Picture
While the waiver provides relief to taxpayers, the programme also serves an important revenue collection objective for the Kenyan government.
By removing accumulated penalties and interest, KRA is seeking to make it easier for businesses and individuals to settle outstanding principal tax that might otherwise remain unpaid. The approach allows the authority to pursue the recovery of the original tax liabilities while encouraging taxpayers who have fallen behind to return to compliance.
The current initiative builds on previous tax amnesty programmes that reportedly helped KRA recover KSh80.9 billion in principal tax while bringing thousands of taxpayers back into the tax system. The more than KSh60 billion already waived under the 2026 programme therefore represents a significant concession by the authority. The longer-term measure of its success, however, will be how much outstanding principal tax it can recover and whether the programme results in more sustained tax compliance.
What Happens After December 31?
Taxpayers who fail to meet the programme’s conditions before December 31 risk losing the opportunity to benefit from the waiver. Any qualifying principal tax that remains unpaid after the deadline will continue to attract applicable penalties and interest, while KRA may proceed with enforcement and recovery measures.
The amnesty does not extend to tax liabilities arising from January 1, 2026. These obligations remain subject to the normal tax rules, including applicable penalties and interest.
Taxpayers are therefore encouraged to review their records through the iTax portal, identify outstanding liabilities and resolve any discrepancies or disputed assessments before the programme closes. Those with ongoing tax disputes may also explore KRA’s Alternative Dispute Resolution process to agree on the principal tax payable.
With over KSh60 billion in penalties and interest already waived, the final weeks of the programme present another opportunity for taxpayers to settle historical obligations. For KRA, the priority is to turn that relief into actual revenue recovery and stronger compliance beyond the amnesty period.
