The Kenya Revenue Authority (KRA) has announced a tax amnesty, waiving Sh140 billion in interest and penalties for businesses and individuals who have settled their principal tax obligations.
This relief, part of the second phase of a partial amnesty programme, is designed to encourage tax compliance and alleviate financial strain on taxpayers.
Over 1.9 Million Taxpayers Benefit
According to KRA, over 1.9 million taxpayers have benefited from the initiative after clearing their principal tax liabilities incurred up to December 2023. As a result, the tax agency has successfully collected Sh4 billion from participants who leveraged the programme.
Eligibility and Payment Options
- Automatic Qualification: Taxpayers with no outstanding principal taxes as of December 2023 automatically qualified for the waiver.
- Payment Plan Option: Those with unpaid principal tax amounts can either settle their dues in full or enter a structured payment plan via the iTax system.
- Amnesty Deadline: Taxpayers must clear their principal amounts by June 30, 2025, to qualify for the waiver.
Dispute Resolution Encouraged
The tax agency is also urging those involved in ongoing tax disputes to seek resolution through Alternative Dispute Resolution (ADR) before the amnesty window closes.
“Taxpayers involved in ongoing tax disputes are encouraged to resolve the disputes through Alternative Dispute Resolution to ensure a swift resolution before the amnesty deadline,” said Rispah Simiyu, former Commissioner for Domestic Taxes, now heading the Large and Medium Taxpayers Department.
She further emphasized the importance of voluntary compliance, stating:
“This initiative is part of KRA’s broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts. It offers a unique chance to settle tax matters on favourable terms and to move forward on a clean slate.”
Expected Impact of the Tax Amnesty Programme
Reopened on December 27, 2024, the tax amnesty programme is expected to:
- Enhance tax revenue collection by increasing compliance.
- Relieve businesses and individuals from accumulated penalties and interest.
- Strengthen the relationship between taxpayers and KRA, encouraging voluntary compliance.
As the June 30, 2025 deadline approaches, eligible taxpayers are advised to take advantage of this opportunity to settle their outstanding tax matters and avoid future penalties.
