Taxpayers burdened by years of accumulated penalties and interest have been handed a major reprieve, as the Kenya Revenue Authority (KRA) confirms the waiver of over Sh140 billion under the ongoing Tax Amnesty Programme.

The initiative, which commenced on December 27, 2024, has already benefited over 1.9 million taxpayers and remains open for eligible applicants until June 30, 2025.

"The Kenya Revenue Authority (KRA) is offering taxpayers an incredible opportunity to ease their tax burdens, having waived over Sh140 billion in penalties, interest and fines under the ongoing Tax Amnesty Program," KRA stated in a public notice.

The amnesty, reintroduced through the Tax Procedures (Amendment) Act, 2024, targets tax debts accrued up to December 31, 2023.

It allows taxpayers to clean their records by waiving penalties, interest, and fines, provided they meet the stipulated conditions.

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According to KRA, "Taxpayers who have paid their principal taxes due before December 31, 2023, automatically qualify for a waiver of related penalties and interest and need not make an application."

This means those who have already settled their principal amounts can immediately benefit without further action.

For taxpayers with outstanding principal tax obligations from the same period, an application through the iTax system is mandatory.

They are required to submit a structured payment plan and ensure full settlement of their principal tax debt by June 30, 2025.

The Authority, however, makes it clear that "Tax debts arising from January 1, 2024 and beyond do not qualify for amnesty. All penalties, interest, and principal taxes for debts incurred after this date remain payable."

Since its relaunch, the program has seen KRA collect Sh4 billion in principal tax payments, reflecting its impact and the willingness of taxpayers to regularise their compliance status.

Additionally, taxpayers entangled in disputes are advised to resolve their cases through the Alternative Dispute Resolution (ADR) mechanism before the amnesty window closes.

KRA views this initiative as a step towards fostering voluntary compliance while easing financial burdens on taxpayers.

The Authority urges all eligible individuals and businesses to seize this opportunity before the June 30, 2025, deadline, as it offers a pathway to a clean slate in tax obligations.