At a Glance
The 2026 Tax Amnesty Programme offers eligible individual and corporate taxpayers relief from interest, penalties and fines relating to tax due on or before 31 December 2025. This Alert highlights the eligibility requirements, key conditions, 31 December 2026 deadline, and steps taxpayers should take to benefit from the amnesty.
Are you an individual taxpayer or a corporate entity with outstanding interest, penalties or fines relating to tax due on or before 31 December 2025?
The 2026 Tax Amnesty Programme provides individual and corporate taxpayers with an opportunity to obtain relief from interest, penalties and fines that accrued in relation to tax due on or before 31 December 2025, subject to the conditions prescribed under the Tax Procedures Act.
This Alert highlights the key features of the Programme, the circumstances in which the relief applies, the conditions that taxpayers must satisfy and the steps that taxpayers should take before the Programme closes.
Understanding the Tax Amnesty Programme
The 2026 Tax Amnesty Programme is provided for under section 37E of the Tax Procedures Act, as amended by the Finance Act, 2026, which reintroduced the tax amnesty in respect of tax liabilities and debts accrued on or before 31 December 2025. The Programme provides relief from interest, penalties and fines and does not extend to the underlying principal tax, which remains payable.
Application of the Tax Amnesty Programme
The manner in which the Tax Amnesty Programme applies depends on whether the taxpayer had any outstanding principal tax as at 31 December 2025.
Taxpayers Who Had Fully Paid Principal Tax by 31 December 2025
Where a taxpayer had paid all principal tax due on or before 31 December 2025, the Commissioner is required to refrain from recovering the related interest, penalties and fines.
No amnesty application is required in such a case. Taxpayers automatically qualify for a 100% waiver of the related interest, penalties and fines, and the waiver is processed automatically through KRA’s systems.
Taxpayers With Outstanding Principal Tax as at 31 December 2025
For a taxpayer with outstanding principal tax as at 31 December 2025 to qualify for the amnesty, the taxpayer must:
- fully settle all outstanding principal tax by 31 December 2026; and
- not incur any further tax debt.
A taxpayer who is unable to settle the outstanding principal tax in a single payment may apply for a payment plan through iTax. The entire outstanding principal tax must nevertheless be fully settled by 31 December 2026 for the taxpayer to benefit from the amnesty.
The amnesty is granted only once and applies to interest, penalties and fines accrued up to 31 December 2025. The underlying principal tax remains payable.
Implications of missing the tax amnesty deadline
The conditions set out above must be satisfied by 31 December 2026. Failure to meet these conditions will result in loss of the amnesty.
Any principal tax remaining unpaid after 31 December 2026 will attract interest and penalties for which no amnesty will be granted.
Action Required
Taxpayers seeking to benefit from the Programme should:
- review their tax ledger and identify any outstanding principal tax, interest, penalties or fines;
- determine whether all principal tax due had been settled by 31 December 2025;
- where principal tax remains outstanding, settle it in full or, where unable to make a one-off payment, apply for a payment plan through iTax;
- ensure that all outstanding principal tax is fully settled by 31 December 2026; and
- avoid incurring any further tax debt during the amnesty period.
Conclusion
The 2026 Tax Amnesty Programme offers taxpayers an opportunity to obtain relief from interest, penalties and fines relating to tax due on or before 31 December 2025. Taxpayers with outstanding principal tax should settle the principal tax by 31 December 2026, either in full or, where a one-off payment is not possible, through a payment plan.
Taxpayers seeking to benefit from the amnesty should act now and ensure that the applicable requirements are met by 31 December 2026.
Contributors
Should you require assistance in reviewing your tax position, assessing your eligibility for the Tax Amnesty Programme, preparing an amnesty application or payment plan, or engaging with the Kenya Revenue Authority on the settlement of outstanding principal tax and related interest, penalties and fines, please contact us at, please contact us at info@sterlinglaw.co.ke
