The Kenya Revenue Authority (KRA) has officially published the operational guidelines for the newly re-introduced Tax Amnesty Programme. Enacted under the Finance Act, 2026, the initiative took effect on July 1st, 2026, offering a strategic window for taxpayers to clear historical tax backlogs and secure a 100% waiver on accrued interest, penalties, and fines.
The amnesty window is strictly time-bound, opening on July 1st, 2026, and scheduled to close on December 31st, 2026. This initiative builds upon the success of two previous amnesty cycles, which successfully recovered Kshs. 80.9 Billion in principal tax payments while regularizing thousands of taxpayers across the country.
For taxpayers looking to navigate the updated guidelines, the core pillars of the 2026 programme outline who qualifies, how to pay, and what remains excluded.
Under the newly published guidelines, certain categories of taxpayers will qualify for full relief automatically, eliminating the need for a formal application process.
- Cleared Principal Taxes: Taxpayers who fully settled their principal tax liabilities on or before December 31st, 2025, will automatically receive a full waiver on any outstanding interest and penalties.
- Late Filing Penalty Relief: For individuals or entities that owe no principal tax but are facing penalties purely due to late filings, an automatic waiver will be triggered. However, this is subject to a strict caveat: all outstanding tax returns must be fully filed to unlock the relief.
For taxpayers who still have unpaid principal taxes accrued up to December 31st, 2025, the KRA has outlined two distinct settlement pathways to access the waiver benefits:
- Immediate Amnesty via Lump-Sum Settlement: Taxpayers who choose to settle their pre-2026 principal tax liabilities in full during this six-month window will instantly receive a 100% waiver on all corresponding penalties and interest.
- Structured Payment Plans: For those unable to make a lump-sum payment, the KRA allows taxpayers to apply for a structured payment plan via the iTax portal. To successfully qualify for the waiver, however, all principal taxes under the agreed plan must be completely cleared by the December 31st, 2026 deadline.
The revenue authority has emphasized that the 2026 amnesty is strictly designed for historical tax relief and does not apply across the board. Taxpayers must take note of two major exclusions:
- Post-2025 Debts: The amnesty program does not cover any tax liabilities, penalties, or interest arising on or after January 1st, 2026. These amounts remain fully due and enforceable under standard tax laws.
- Ongoing Tax Disputes: Principal amounts that are currently the subject of active litigation are excluded from automatic amnesty. Instead, the KRA advises affected taxpayers to utilize the Alternative Dispute Resolution (ADR) framework to settle their principal disputes, which will subsequently unlock the corresponding amnesty benefits.