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Over 3 million get tax relief as KRA waives Sh170 billion

Business · Tania Wanjiku · June 21, 2025
Over 3 million get tax relief as KRA waives Sh170 billion
KRA Commissioner General Humphrey Wattanga. PHOTO/KRA
In Summary

The amnesty programme, which ends this month, allows eligible taxpayers to clear historical tax debts by settling principal amounts while receiving automatic waivers on related charges.

Millions of Kenyans have received a financial lifeline under the Kenya Revenue Authority’s tax amnesty programme, which has so far scrapped Sh170 billion worth of penalties, interest, and fines, ahead of the fast-approaching June 30 deadline.

The tax amnesty, relaunched in December 2024, targets penalties and interest linked to tax debts accrued up to December 31, 2023.

It is open to individuals and businesses who either have no outstanding principal tax or are willing to pay their arrears in full or through instalments.

“As of the end of May 2025, over Sh170 billion in penalties, interest, and fines have been waived, with more than three million taxpayers benefitting from the amnesty programme, demonstrating the programme’s wide-reaching impact,” said KRA.

Initially introduced in 2023, the programme had run until June of that year before being reinstated to offer relief to more taxpayers dealing with historical tax burdens.

The initiative has also helped KRA collect Sh13 billion in principal taxes so far, even as the primary focus remains on waiving accumulated charges.

“This reflects great uptake of the initiative and the programme’s success in resolving legacy issues in tax ledgers,” said KRA. During the 2023/24 financial year alone, the authority recorded Sh43.9 billion in collections after 2.6 million taxpayers benefited from the amnesty.

Those eligible for the waivers include taxpayers who do not owe any principal tax as of December 31, 2023. Those with unpaid principal amounts can also qualify, but only if they commit to settling their balances before the amnesty lapses.

KRA emphasised that filing of pending tax returns, including nil returns, is required before one qualifies for the waivers.

“A key point worth noting is that taxpayers who haven’t filed their returns for several years including nil returns will need to do so before settling the principal tax payments before the amnesty can apply. Filing relevant returns will automatically trigger the system to waive interest and penalties accrued making one eligible for amnesty without needing another application,” noted KRA.

Even those with disputed tax debts are eligible, provided they engage KRA to resolve the matter, agree on the final amount owed, and settle it within the given timeframe.

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