KRA waives Sh158 billion in tax penalties for 2.9 million Kenyans
According to KRA, this initiative is part of a wider effort to encourage voluntary compliance and ease the burden of tax-related penalties on individuals and businesses.
Millions of Kenyans have received a major financial reprieve as the Kenya Revenue Authority (KRA) wrote off Sh158 billion in penalties, interest, and fines.
The relief comes under the Tax Amnesty Programme launched in late December 2024, aimed at helping citizens settle old tax debts and clear their records.
As of April 9, 2025, more than 2.9 million taxpayers had qualified for the amnesty, giving them a fresh start with the taxman.
KRA also confirmed that it has collected Sh10.9 billion in principal taxes since the programme was introduced.
"The Tax Amnesty Programme provides an opportunity for taxpayers to clean their tax records through offering a waiver on penalties, interest and fines for tax debts accrued up to December 31, 2023," KRA said.
According to KRA, this initiative is part of a wider effort to encourage voluntary compliance and ease the burden of tax-related penalties on individuals and businesses.
By forgiving penalties and interest, the authority hopes to create a smoother path for taxpayers to regularise their compliance.
For taxpayers with no pending principal taxes as of December 31, 2023, the amnesty is automatic.
These individuals are not required to apply for the waiver, and their penalties and interest have been cancelled without additional steps.
However, those with outstanding principal taxes must apply for the amnesty through the KRA tax system.
They are also expected to submit a payment plan and fully settle their debts by the June 30, 2025, deadline to benefit from the waiver.
Debts that were incurred from January 1, 2024, onwards are not covered under the amnesty.
All taxes, penalties, and interest from this period must still be paid in full.
Taxpayers currently engaged in disputes with the Authority are being encouraged to seek resolution through the Alternative Dispute Resolution (ADR) framework.
KRA says this will help avoid delays and ensure they can still take advantage of the amnesty while it remains available.
The Authority is urging all eligible taxpayers not to wait until the last minute.
