KRA Announces 6-Month Tax Amnesty for Kenyans with Tax Arrears

KRA Announces 6-Month Tax Amnesty for Kenyans with Tax Arrears. Treasury Cabinet Secretary John Mbadi has announced a six-month tax amnesty that will allow eligible taxpayers to clear outstanding tax arrears without paying accumulated penalties and interest.

Speaking during a television interview on Wednesday, July 1, 2026, Mbadi said the tax relief forms part of the Finance Act, 2026, which took effect on July 1.

He said the amnesty aims to help taxpayers who fell behind on their tax obligations because of financial and other challenges.

Mbadi said many taxpayers failed to pay their taxes on time, prompting the Kenya Revenue Authority (KRA) to charge interest and levy penalties on the outstanding amounts.

Who Qualifies for the Amnesty?

The programme covers tax arrears that taxpayers accumulated up to December 2025.

Eligible taxpayers have until December 31, 2026, to pay only the principal tax they owe. KRA will waive all related penalties and interest after taxpayers clear the principal amount within the six-month period.

Mbadi said the Finance Act grants taxpayers with tax arrears up to 2025 a six-month amnesty running from July 1 to December 31, 2026. During that period, taxpayers only need to pay the principal tax.

He urged eligible taxpayers to visit KRA offices, regularise their tax records and clear the principal tax before the deadline.

He said taxpayers only need to present themselves to the tax authority and pay the principal tax, after which KRA will waive all interest and penalties.

Part of Finance Act 2026

Mbadi said the Finance Act, 2026, introduced the tax amnesty to encourage voluntary tax compliance while easing the burden on taxpayers.

The government expects the initiative to improve revenue collection by encouraging individuals and businesses to clear outstanding tax obligations without incurring additional penalty costs.