KRA Announces Ksh158B Waiver for 2.9 Million Kenyans; How to Benefit

The Kenya Revenue Authority (KRA) has announced that it has waived Ksh158 billion in penalties and interest for 2.9 million Kenyans.

In a statement dated Wednesday, April 16, the taxman noted that the amnesty program was still ongoing, with more Kenyans being targeted for the waiver of penalties and interests that were incurred for tax due in December 2023.

‍Why it Matters: Millions of Kenyans are usually penalised for failing to meet their tax obligations annually. The tax amnesty program, therefore, offers them an opportunity to reduce their tax burden and pay their outstanding dues.

Under the program, while KRA waives the interest, fines, and interests, beneficiaries are required to pay the principal tax due.

Since the launch of the program, which was started on December 27, 2027, KRA has collected Ksh10.9 billion for principal taxes.

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"The program, which runs until June 30, 2025, underscores KRA’s commitment to helping taxpayers resolve past tax issues and regularise their tax compliance," read the statement in part.

"This initiative is 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 on a clean slate."

‍Who Qualifies and How to Apply

All Kenyans who have fines and interest for outstanding taxes that were due up to December 2023 qualify for tax amnesty.

"Tax debts arising from 1st January 2024 and after do not qualify for amnesty. All penalties, interest, and principal taxes for debts incurred after this date remain payable," KRA added.

To apply for the tax amnesty program, affected Kenyans are required to make an application through the iTax system.

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In the application, Kenyans are advised to submit a structured payment plan on how they intend to settle the outstanding principal taxes.

"Taxpayers with ongoing tax disputes are encouraged to resolve the disputes through the Alternative Dispute Resolution framework (ADR) to ensure a swift resolution before the amnesty timeline lapses," the taxman added.

"KRA encourages all taxpayers to act promptly and take advantage of the tax amnesty before the June 30, 2025, deadline."