Taxpayers seeking relief from mounting tax penalties can now begin applying for amnesty after the Kenya Revenue Authority activated the programme on its iTax platform, opening a six-month window for eligible individuals and businesses to settle old tax debts without paying penalties, interest or fines.
"Following the enactment of the Finance Act 2026, the tax amnesty functionality has been activated in the iTax system to facilitate the implementation of the tax amnesty provisions under section 37E of the Tax Procedures Act" he said.
The tax amnesty, which took effect on July 1 and will run until December 31, 2026, was brought back under the Finance Act, 2026. It allows taxpayers to enjoy a 100 per cent waiver of penalties, interest and fines on tax debts that accumulated up to December 31, 2025, as long as they meet the conditions set under the law.
The programme follows two earlier tax amnesty initiatives that enabled KRA to collect Sh80.9 billion in principal tax while helping thousands of taxpayers return to compliance after falling behind on their tax obligations.
Taxpayers who do not have any outstanding principal tax but incurred late filing penalties will not be required to apply for the waiver. Once they file all outstanding tax returns, the penalties will be waived automatically.
Those who had already cleared their principal tax liabilities by December 31, 2025 will also automatically qualify for the waiver of all related penalties and interest without submitting a formal application.
Taxpayers who still owe principal tax can benefit from the programme by paying the full outstanding amount before the amnesty period ends. After the principal tax is paid, the associated penalties and interest will be waived.
Those unable to clear the amount in a single payment may apply for a structured payment arrangement through the iTax system. However, they must fully settle the principal tax by December 31, 2026 to qualify for the waiver.
KRA has excluded tax liabilities arising from January 1, 2026 from the amnesty, meaning such taxes remain payable under the normal tax rules.