Taxpayers rush as KRA amnesty hits Sh165bn

Kenya’s tax amnesty programme has provided substantial relief to over three million taxpayers, who have collectively benefited from the waiving of Sh165 billion in penalties, interest, and fines.

This strategic move by the Kenya Revenue Authority (KRA) aims to ease the financial burdens of businesses and individuals struggling with past tax obligations while also encouraging timely payments.

KRA reported that between December 2024 and April 2025, the initiative generated Sh13.5 billion in revenue, despite ongoing challenges in the business environment.

"The Tax Amnesty Programme has seen strong uptake, generating Sh13.5 billion in revenue between December 2024 and April 2025. KRA has waived Sh164.9 billion in penalties and interest, benefiting over three million taxpayers," the KRA stated in a release.

The amnesty, which runs until June 30, 2025, offers a significant advantage to those who settle their principal tax arrears, as it clears accrued penalties and interest.

Taxpayers who have no outstanding principal debts as of December 2023 automatically saw their interest and fines wiped off, while those with arrears are given the opportunity to negotiate a payment plan.

The current phase of the amnesty follows the initial phase, which wiped off Sh508 billion in penalties and interest for taxpayers who settled their obligations for the period ending December 2022.

These efforts are part of KRA’s broader strategy to encourage voluntary tax compliance and expand the taxpayer base.

As KRA continues to roll out reforms such as the Centralised Release Office to improve cargo clearance and the Electronic Rental Income Tax System to assist landlords, the authority has seen its total tax collections grow by 3.6% to Sh1.91 trillion over the 10 months to April 2024.

This, despite a difficult economic environment where key sectors like real estate, manufacturing, and trade have experienced setbacks.