KRA Waives Ksh 140 Billion In Tax Penalties And Interest

The Kenya Revenue Authority (KRA) has waived over Kshs. 140 billion in penalties, interest, and fines under the ongoing Tax Amnesty Program, providing significant relief to taxpayers. Since its launch on December 27, 2024, the initiative has benefited over 1.9 million taxpayers and continues to offer a lifeline to those seeking to regularize their tax status.

The amnesty program, re-introduced in the Tax Procedures (Amendment) Act, 2024, allows taxpayers to clear their tax records by waiving penalties, interest, and fines for tax debts accrued up to December 31, 2023. The program runs until June 30, 2025, reflecting KRA’s commitment to easing financial burdens for taxpayers while encouraging compliance.

Since its re-launch, the initiative has successfully generated Kshs. 4 billion in principal tax payments, highlighting its impact and the willingness of taxpayers to settle outstanding obligations.

Key Highlights of the Amnesty Program:

• Automatic Waiver: Taxpayers who had settled their principal taxes due before December 31, 2023, automatically qualify for a waiver of related penalties and interest without needing to apply.
• Application Requirement: Taxpayers with outstanding principal taxes as of December 31, 2023, must apply through the iTax system and submit a structured payment plan to clear the principal amount by June 30, 2025.
• Exclusions: Tax debts accrued from January 1, 2024, onwards do not qualify for the amnesty. Penalties, interest, and principal taxes for such debts remain payable.

Additionally, taxpayers engaged in ongoing disputes with KRA are encouraged to utilize the Alternative Dispute Resolution (ADR) mechanism to resolve their cases before the amnesty deadline.

This initiative is part of KRA’s broader efforts to promote voluntary tax compliance and alleviate financial strain on taxpayers. Eligible individuals and businesses are urged to take advantage of this opportunity before the June 30, 2025, deadline to avoid additional tax burdens and ensure compliance with tax obligations.

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