KRA Announces Ksh140 Billion Tax Waiver For Millions Of Kenyans

The Kenya Revenue Authority (KRA) has declared a Ksh 140 billion waiver on tax penalties, interest, and fines as part of the ongoing Tax Amnesty Program.

This program provides relief to taxpayers by waiving penalties and interest, requiring them to pay only the principal tax amount.

"The Kenya Revenue Authority (KRA) is offering taxpayers an incredible opportunity to ease their tax burdens, having waived over Kshs. 140 billion in penalties, interest and fines under the ongoing Tax Amnesty Program.

"With over 1.9 million taxpayers already benefiting from this initiative, launched on 27th December 2024, it continues to provide relief to those who qualify," stated KRA in part.

According to the taxman, the Amnesty program re-introduced in the Tax Procedures (Amendment) Act, 2024, provides a crucial opportunity for taxpayers to clean their tax records, offering a waiver on penalties, interest and fines for tax debts accrued up to December 31 2023.

The program underscores KRA's commitment to helping taxpayers resolve past tax issues without facing the full financial burden. Currently, it is set to run until June 30, 2025.

Since the re-launch of the Tax Amnesty program, KRA revealed that it has successfully collected Ksh4 billion in principal tax payments, demonstrating the program's wide-reaching impact and the authority's commitment to supporting taxpayers in regularizing their tax compliance.

Among the key highlights of the program include automatic waivers, meaning taxpayers who have paid their principal taxes due before December 31, 2023, automatically qualify for a waiver of related penalties and interest and need not make an application.

"Application Requirement: Taxpayers with outstanding principal taxes up to 31st December 2023 must apply via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by 30th June 2025," further stated KRA.

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

KRA urged taxpayers involved in ongoing tax disputes to resolve the disputes through the Alternative Dispute Resolution (ADR) to ensure a swift resolution before the amnesty deadline.

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 on a clean slate.

Eligible taxpayers have been urged to act promptly in order to take full advantage of this amnesty before the June 30, 2025, deadline.