Kenya's tax amnesty programme, which runs from 1 July 2026 to 31 December 2026 under the Finance Act 2026, offers a 100% waiver on interest, fines, and penalties for tax debts incurred up to 31 December 2025, provided principal taxes are settled by year-end.
The Kenya Revenue Authority (KRA) announced on 3 July 2026 that it has rolled out a new tax relief programme designed to ease the financial burden on citizens while simultaneously boosting domestic revenue.
Building upon two previous campaigns that successfully reclaimed KES 80.9 billion in principal taxes, this third amnesty cycle aims to help thousands of taxpayers regularise their financial standing.
Eligibility and legislative framework
Enacted under the Finance Act, 2026, the amnesty period officially commenced on 01 July 2026 and will conclude on 31 December 2026. The core benefit of the programme is a 100% waiver on all accrued interest, fines, and penalties for tax liabilities incurred up to 31 December 2025.
Individuals and businesses that fully settle their principal tax debts by 31 December 2025 will automatically receive this complete waiver without needing to submit any formal applications.
Additionally, taxpayers who do not owe any principal tax but have accumulated penalties solely from late filing will also receive an automatic waiver the moment they submit their outstanding returns.
Settlement options and exclusions
For those who still have unpaid principal taxes dating back to before 01 January 2026, the KRA is offering an instant waiver on corresponding penalties if the outstanding principal is paid in full during the current six-month window. To accommodate those unable to make lump-sum payments, the authority permits structured payment arrangements via the iTax platform, as long as the entire principal balance is cleared by the 31 December 2026 deadline.
The KRA is also urging taxpayers currently engaged in tax conflicts to leverage the Alternative Dispute Resolution (ADR) framework to finalise their principal liabilities and gain eligibility for the relief. It is crucial to note that the amnesty strictly excludes any tax debts, penalties, or interest arising on or after 01 January 2026, which must be paid in full.
