When tax debt grows through penalties and interest, many taxpayers are stuck: the amount is so large that they cannot clear it. Parliament has several times passed a tax amnesty: an offer to waive the penalties and interest on old tax debts if the taxpayer pays the original tax by a set date. If you owe KRA, it is worth understanding how it works.

How an amnesty works

  • It applies to tax that was due before a cut-off date.
  • If you pay the principal tax within the amnesty period, KRA waives the penalties and interest (in full, or in part, depending on the terms and when you pay).
  • You must file any outstanding returns and, in some cases, apply in writing or through iTax.

What changed recently

According to a summary of the Finance Act, 2026, the amnesty provisions were extended again: the cut-off for qualifying tax debt moved to 31 December 2025, and the deadline to settle the outstanding principal tax moved to 31 December 2026. That means debts that arose up to the end of 2025 may qualify if the principal is paid by the end of 2026. Terms differ between amnesty periods, so read the current provisions or a KRA notice for the details that apply to you.

An example

You owe KES 400,000 of tax from 2023, plus KES 280,000 in penalties and interest that built up. Under an amnesty, paying the KES 400,000 principal in the window could remove the KES 280,000. Estimate the penalties and interest you would otherwise pay with the KRA penalty calculator, and read KRA penalties and interest explained for how they build up.

How to use it

  1. List what you owe, by tax head and period, from your iTax ledger.
  2. File all missing returns, including nil returns; see nil returns explained.
  3. Check eligibility against the cut-off date and the tax heads covered.
  4. Pay the principal by the deadline, or agree an instalment arrangement, and make sure the payment is allocated to the right periods.
  5. Apply for the waiver in the way KRA directs, and keep the confirmation.

The free KRA correspondence and objections log and the tax payments log keep the paper trail, and the tax penalty estimator workbook shows what several late returns would cost.

What an amnesty does not do

  • It does not cancel the principal tax.
  • It may not cover fraud, tax evasion or tax withheld but not paid over.
  • It does not protect you from penalties on new defaults.

The cost of waiting

Interest keeps growing, and a taxpayer who is not compliant may be blocked from getting a tax compliance certificate, bidding for contracts or renewing licences; see getting a tax compliance certificate.

Stay compliant afterwards

Put every due date on a calendar; see the KRA filing calendar for small businesses. For a payment plan for tax you cannot pay all at once, ask KRA.

Amnesty terms are set by law and KRA notices and can change. Confirm the current terms with KRA before you pay.

Common questions

Does an amnesty wipe out the tax itself? No. An amnesty normally waives some or all of the penalties and interest on tax debt, but the principal tax must still be paid. The conditions, the period covered and the deadline are set by the law that introduces it, so read them before relying on it.

How do I apply for an amnesty? You apply through iTax using the process KRA publishes for the amnesty, usually by filing any missing returns, agreeing the tax due and paying it, or setting up a payment plan, by the stated deadline. Check KRA's public notice for the current steps.

What if I miss the amnesty deadline? Penalties and interest revert to the normal rates. You can still ask KRA for a payment plan, or apply for a waiver of penalties if you have a reasonable cause and evidence for it.