The Kenya Revenue Authority(KRA) has announced a Ksh 140 Billion waiver in tax penalties, interests, and fines under the ongoing Tax Amnesty Program.
The tax amnesty program grants a waiver for taxpayers who have incurred penalties and interests, allowing them to pay only the principal tax.
In a statement on Monday, March 3, KRA noted that taxpayers who have paid their principal taxes due before December 31, 2023, automatically qualify for the waiver without the need for an application.
According to KRA, taxpayers with outstanding principal taxes up to December 31, 2023, will be required to apply for the waiver via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by June 30, 2025.
The Authority has, however, noted that tax debts arising from January 1, 2024, and beyond do not qualify for the waiver, and outstanding penalties, interest, and principal taxes for debts after this date will remain payable.
The tax amnesty program, which was introduced by President William Ruto's administration and currently benefits over 1.9 million taxpayers, was launched on December 27, 2024, and is set to run until June 30, 2025.
"The amnesty Program re-introduced in the Tax Procedures (Amendment) Act, 2024, provides a crucial opportunity for taxpayers to clean their records, offering a waiver on penalties, interest, and fines for tax debt accrued up to 31st December 2023, underscoring KRA's commitment to helping taxpayers resolve past tax issues without facing the full-time financial burden," it stated.
The programme, according to the President, would align with his plan for a fair and inclusive economy.
According to Ruto, the amnesty programme would assist taxpayers with financial burdens and spur economic growth and inclusivity.
"We are now making an offer to our taxpayers to have an opportunity to only pay the principal. I expect the taxpaying public will take advantage," Ruto said in 2023.
Since its relaunch, the programme has so far collected Kshs 4 billion in principal tax payments.
"This initiative is a part of KRA's broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts. It offers a unique chance to settle tax matters on favourable terms and to move forward in a clean state," KRA said.
