In a major relief for taxpayers, the Kenya Revenue Authority (KRA) has rolled out an enhanced tax amnesty program, waiving an impressive Kshs. 140 billion in penalties and interest. Re-launched on December 27, 2024, under the Tax Procedures (Amendment) Act, 2022, this initiative offers a lifeline to over 1.9 million taxpayers, allowing them to clear their tax records and ease their financial burdens. Since its re-launch, KRA has successfully collected Kshs. 4 billion in principal tax payments, showcasing the program’s wide-reaching impact. Here’s what you need to know about this opportunity, which runs until June 30, 2025.
Key Details of the Tax Amnesty Program
Automatic Relief: Taxpayers who settled their principal taxes due before December 31, 2023, automatically qualify for a waiver of related penalties and interest—no application required.
Apply and Settle: For those with outstanding principal taxes as of December 31, 2023, submit an application via the iTax system and propose a structured payment plan for full settlement by June 30, 2025, to qualify for the waiver.
Exclusions: Tax debts arising from January 1, 2024, onward do not qualify for amnesty. All penalties, interest, and principal taxes for debts incurred after this date remain payable.
Additional Insights
The amnesty program underscores KRA’s commitment to helping taxpayers resolve past tax issues without the full financial burden. Taxpayers involved in ongoing tax disputes are encouraged to resolve them through the Alternative Dispute Resolution (ADR) process to ensure swift resolution before the amnesty deadline.
This initiative is part of KRA’s broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts, offering a unique chance to settle tax matters on favorable terms and start afresh.
The Commissioner for Domestic Taxes, Tulipe Ushuru, Tujitegeme!, emphasizes the urgency for eligible taxpayers to act promptly and take full advantage of this amnesty before the June 30, 2025, deadline.
