The Kenya Revenue Authority (KRA) has unveiled a tax amnesty program offering a waiver on Ksh 140 billion in tax penalties, interests, and fines. This initiative allows eligible taxpayers to clear their tax obligations by paying only the principal amount due.
How the Tax Amnesty Works
Taxpayers who had already settled their principal tax due before December 31, 2023, automatically qualify for the waiver—no application required. For those with outstanding principal tax obligations up to the same date, an application must be submitted via the iTax system, along with a structured payment plan. These payments must be completed by June 30, 2025.
However, tax debts incurred from January 1, 2024, onwards are not eligible for the waiver. All penalties, interest, and principal amounts for debts beyond this date remain payable.
Background and Impact
Launched on December 27, 2024, the tax amnesty program is part of President William Ruto’s broader economic plan to create a fair and inclusive financial system. The initiative, introduced through the Tax Procedures (Amendment) Act, 2024, benefits over 1.9 million taxpayers by providing relief on accrued penalties and interest.
“The amnesty program is an opportunity for taxpayers to settle past obligations without the burden of penalties and interest. This move underscores KRA’s commitment to supporting taxpayers in resolving historical tax issues,” KRA stated.
President Ruto emphasized that the program aligns with his administration’s economic vision, offering financial relief and fostering economic growth.
“We are giving taxpayers a chance to clear their records by paying only the principal amount. I encourage them to take full advantage of this initiative,” he said in 2023.
Since its relaunch, the program has already facilitated the collection of Ksh 4 billion in principal tax payments.
Encouraging Voluntary Compliance
KRA sees this initiative as part of its broader strategy to promote voluntary tax compliance while alleviating financial burdens on businesses and individuals.
“This program provides a unique opportunity to settle tax matters under favorable terms, allowing taxpayers to move forward with a clean slate,” KRA added.
With the amnesty running until June 30, 2025, taxpayers are urged to take advantage of the program and resolve outstanding tax liabilities efficiently.