Introduction: A Second Chance for Taxpayers

In a bid to encourage tax compliance and ease the burden on defaulting taxpayers, the Kenya Revenue Authority (KRA) is running a nationwide tax amnesty program that offers a clean slate to those with outstanding penalties and interest. This amnesty, which runs up to June 30, 2025, is a rare opportunity for individuals and businesses to regularize their tax affairs without incurring heavy financial consequences.

Whether you are a salaried employee, a landlord, a consultant, or a company director with unresolved tax issues, this program is designed to help you get back into compliance—legally and affordably.

What Is KRA Amnesty?

KRA’s tax amnesty is a government-sanctioned waiver that removes penalties and interest on tax debts accrued up to December 31, 2023, provided the taxpayer pays the principal tax amount in full.

This includes:

• -Penalties for late filing of tax returns.

• -Penalties for late payment of taxes.

• -Accrued interest on unpaid tax.

Once the principal tax is paid, the associated penalties and interest are written off automatically under the amnesty program.

Who Qualifies?

You are eligible for the amnesty if:

• -You have tax arrears (unpaid taxes) from any period before January 1, 2024.

• -You haven’t filed returns for one or more previous years and want to correct that.

• -You have already filed returns but failed to pay the principal tax on time.

The amnesty is open to both individuals and corporate entities, and it covers all types of taxes—Income Tax, PAYE, VAT, Excise Duty, and Withholding Tax, among others.

What Is Covered?

The amnesty specifically waives:

• -Late filing penalties (for not submitting returns on time).

• -Late payment penalties (for not paying tax when due).

• -Interest accrued due to delayed payments.

What it does not cover:

• -Any tax principal still unpaid after June 30, 2025.

• -Penalties and interest arising after January 1, 2024.

• -Fraudulent or criminally undeclared income cases (these are subject to investigation).

How to Apply for KRA Amnesty

Applying for the amnesty involves a few clear steps:

1. 1.Log into the iTax Portal: Use your KRA PIN and password.

1. 2.File Backdated Returns: For any missing years up to 2023, ensure you file accurate returns.

1. 3.Declare the Principal Tax Due: KRA systems will automatically compute how much you owe.

1. 4.Pay the Principal Amount: This must be done in full before the June 30, 2025 deadline.

1. 5.Automatic Waiver: Once payment is confirmed, the associated penalties and interest will be cleared without any additional application.

KRA has also enabled a voluntary disclosure mechanism for those who want to report previously unreported income or correct earlier tax declarations.

Benefits of the Amnesty

• -Zero penalties and interest: You pay only the tax you were initially supposed to pay—nothing more.

• -Restores compliance: You regain access to Tax Compliance Certificates (TCC).

• -Prevents legal action: You avoid audits, enforcement, and court proceedings.

• -Peace of mind: It eliminates longstanding tax stress and clears your record.

What Happens After June 30, 2025?

After the amnesty window closes, any taxpayer who failed to take advantage of the offer will be liable for full penalties, interest, and potentially enforcement actions.

KRA may institute aggressive recovery measures, including:

• -Issuance of agency notices to banks.

• -Seizure of assets and income.

• -Legal proceedings and prosecution for tax default.

Key Reminders

• -This is a one-time opportunity; there’s no guarantee of another amnesty soon.

• -Payments must be made in full by June 30, 2025 to benefit.

• -Keep your filing history up to date to avoid future penalties.

Conclusion: Take Action Now

The KRA tax amnesty is more than a waiver—it’s a lifeline for individuals and businesses stuck in years of non-compliance. With the deadline set at June 30, 2025, this is your chance to correct the past, clear your ledger, and move forward tax-compliant. Ignoring the offer could result in compounded debts and legal trouble. It’s time to take action while the door is still open.

Read this related article: Kenya’s 2025 Tax Returns Deadline and Penalties Explained