On 7 September 2026, the Kenya Revenue Authority (KRA) published a public notice declaring a tax amnesty program covering interest, penalties, and fines accrued on outstanding tax liabilities. This initiative aims to enhance voluntary compliance, reduce the stock of disputed tax debt, and provide relief to taxpayers facing financial hardship. The amnesty applies to taxes administered under the Income Tax Act, Value Added Tax Act, Excise Duty Act, and the Tax Procedures Act, 2015. Taxpayers must apply within the stipulated window and settle the principal tax amount to qualify for the waiver. The measure aligns with the government’s medium-term revenue strategy to broaden the tax base while fostering a cooperative compliance environment.
Key Takeaways
- Comprehensive Waiver Scope: The amnesty covers all interest, penalties, and fines imposed under relevant tax laws up to the date of the notice, provided the principal tax is paid in full or under an approved installment plan.
- Application and Compliance Requirements: Taxpayers must submit a formal application through the iTax portal, declare all outstanding liabilities, and commit to future filing and payment obligations. Failure to honor the terms may result in reinstatement of waived charges.
- Strategic Revenue Impact: The program is expected to unlock significant locked-up revenue, reduce litigation caseloads, and improve cash flow for businesses, particularly SMEs burdened by historical non-compliance.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement