KRA has reopened its six-month Tax Amnesty Programme under Section 37E of the Tax Procedures Act (Finance Act, 2026). It waives 100% of penalties, interest, and fines on tax liabilities accrued up to 31 December 2025.
The window opened on 1 July 2026 and closes firmly on 31 December 2026 — no extension is expected, and any uncovered accessories will continue accruing under Section 85 of the TPA.
What Exactly Is the KRA Tax Amnesty 2026?
A tax amnesty is a time-limited relief: KRA cancels the penalties, interest, and fines attached to a tax debt once the taxpayer settles the underlying principal within a defined window. The 2026 programme is the latest in a series, building on the 2023 amnesty (debts to 31 December 2022) and the 2024 extension (to 31 December 2023). Three legal anchors govern the current window:
Three legal anchors govern the current window:
- Section 37E, TPA, 2015 — statutory basis for the Commissioner to operate the programme.
- Section 89, TPA (Finance Act, 2025) — restores the Commissioner's discretion to waive penalties or interest caused by iTax system errors, delays, or duplicated obligations.
- Finance Act, 2026 — reintroduces the broader amnesty across all categories for the period ending 31 December 2025.
Who Qualifies for the 2026 Tax Amnesty?
The amnesty is broad, but not universal. The table below maps the five taxpayer situations KRA addresses on its programme page and the action each requires.
What the Amnesty Covers and What It Does Not
The 100% relief applies to three categories of charge, all linked to tax periods ending on or before 31 December 2025:
- Penalties for late filing, late payment, and non-compliance.
- Interest charged on overdue principal tax under Section 86 of the TPA.
- Administrative fines (including those linked to iTax-generated default assessments).
What the amnesty does not cover:
- Any liability (principal, interest, or penalty) arising on or after 1 January 2026, fully due and continuing to accrue.
- Section 85 penalties and interest (tax avoidance, abusive arrangements, fraudulent misrepresentation), categorically excluded.
- Principal tax itself, only accessories are waived; the waiver does not crystallise until the principal is settled.
- Criminal prosecution under Sections 103–106 of the TPA, civil relief only; criminal cases follow their own track.
Key Dates and Deadlines You Cannot Afford to Miss
A typical KES 1,000,000 tax debt carries accessories that more than double the real cost. The chart below illustrates what a business can clear through the 2026 programme.
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Illustrative Impact: Tax Debt Before vs After the 2026 KRA Amnesty
Principal TaxLate Payment PenaltyInterestLate-Filing FineBefore Amnesty (KES)100000020000035000050000After Amnesty (KES)1000000000
How to Apply: Step-by-Step Guide for Kenyan Businesses
Unlike the 2023 amnesty, the 2026 programme is largely system-driven; many cases need no formal application. Take these steps to ensure KRA's automated processes recognise your position.
Step 1 — Verify Your iTax Health
Log in to iTax and reconcile your profile: active KRA PIN, current registered email, correct company obligations. Anything stale blocks the automated waiver.
Step 2 — File All Outstanding Returns
File all outstanding returns (including nil returns) for periods up to 31 December 2025 before your record is processed. Late-filing penalties only waive once the returns are on file.
Step 3 — Settle the Principal Tax or Set Up a Plan
If principal tax is outstanding, either pay in full (editing the PRN to principal-only) or set up a payment plan via Payments → Apply Payment Plan. Plans must complete by 31 December 2026; a July 2026 plan supports up to six instalments.
Step 4 — Engage ADR If You Have Active Disputes
For matters at the Tax Appeals Tribunal or in objection, use KRA's ADR framework to settle principal tax first — the waiver then releases automatically.
Step 5 — Trigger the Waiver and Download Your Certificate
The waiver processes automatically on login or payment reconciliation. The Amnesty Certificate is emailed to your registered address and downloadable from Taxpayer Profile → Useful Links → Consult and Reprint Acknowledgement Receipts and Certificates → Debt and Enforcement → Amnesty Certificate.
Known iTax Issues and How to Handle Them
KRA is still stabilising some automation paths through end of August 2026. The four scenarios that may affect your business:
Some withholding tax transactions won't auto-process — request a manual nudge via KRA or your advisor.
Manually imposed fines may persist — request a KRA review for any eligible line.
PRNs may include penalties by default — edit the amount to principal-only; accessories reverse automatically on clearance.
Missing PAYE credits (2013–2015 transition and some Nov–Dec 2025 filings) — contact your account manager or KRA Contact Centre.
Common Mistakes Kenyan Businesses Make During the Window
Assuming exclusion. Visible penalties do not mean exclusion — KRA is processing the ledger in batches.
Plans that overrun 31 December 2026. Unpaid principal forfeits the waiver and falls back to full penalty.
Paying the unedited PRN amount. PRNs default to principal plus accessories — pay principal only.
Ignoring active disputes. TAT or objection matters stay outside the waiver unless proactively resolved via ADR.
Treating post-1 January 2026 taxes as covered. The cut-off is absolute — new liabilities are fully payable.
Why Acting Before 31 December 2026 Matters
Three converging pressures make early action the correct strategic choice:
Cash-Flow Recovery
Penalties and interest typically represent 30–60% of an outstanding tax liability — waiving them frees working capital and lowers the effective cost of compliance.
Audit and Compliance Posture
An Amnesty Certificate strengthens the audit posture and is increasingly required for public-sector tenders, statutory clearances, and TCC applications.
Future Filing Discipline
The amnesty is a once-in-a-few-years event. Section 85 penalties — the most punitive category — are excluded; once the window closes, every new lapse falls back to the full statutory regime.
Frequently Asked Questions (FAQs)
Answers are written in concise, declarative form so search engines and AI assistants can surface them as direct snippets.
What is the KRA Tax Amnesty 2026?
The KRA Tax Amnesty 2026 is a six-month programme that waives 100% of penalties, interest, and fines on tax debts accrued up to 31 December 2025, provided the underlying principal tax is settled by 31 December 2026.
When does the 2026 KRA Tax Amnesty open and close?
The amnesty opened on 1 July 2026 and closes on 31 December 2026. There is no statutory provision for extension, so businesses must complete all qualifying actions within that period.
Who is eligible for the KRA 2026 tax amnesty?
Any taxpayer — individual, partnership, company, or other entity — with tax liabilities, penalties, interest, or fines for periods up to 31 December 2025, provided the principal tax is settled or scheduled for payment before 31 December 2026.
What does the amnesty cover?
It covers 100% of penalties, interest, and fines for tax periods up to 31 December 2025. It does not cover the principal tax itself, and it does not cover any liability arising on or after 1 January 2026.
What is excluded from the KRA 2026 amnesty?
Tax liabilities arising on or after 1 January 2026 are fully excluded. Penalties and interest imposed under Section 85 of the Tax Procedures Act (tax avoidance) are also excluded. Criminal prosecution is not affected.
How do I apply for the KRA tax amnesty 2026?
Many cases are processed automatically. If action is required, log in to iTax at https://itax.kra.go.ke, navigate to Payments, choose either a lump-sum payment or a structured payment plan, and ensure the principal tax is fully cleared by 31 December 2026.
Can I use a payment plan instead of paying everything at once?
Yes. Apply via Payments → Apply Payment Plan in iTax. A plan submitted in July 2026 supports up to six instalments. The plan must be fully cleared by 31 December 2026 or the corresponding waiver is forfeited.
I already paid my principal tax by 31 December 2025. What do I do?
No application is required. KRA’s system will process your waiver automatically. You will receive your Amnesty Certificate by email.
I have an active tax dispute at the Tax Appeals Tribunal. Can I still benefit?
Yes. Engage the KRA Alternative Dispute Resolution (ADR) framework to settle the principal tax. Once ADR concludes, the amnesty benefits on the associated penalties, interest, and fines are released automatically.
How will I receive my KRA Amnesty Certificate?
KRA emails the certificate to your registered iTax address. It can also be downloaded from Taxpayer Profile → Useful Links → Consult and Reprint Acknowledgement Receipts and Certificates → Business Process: Debt and Enforcement → Sub Process: Amnesty Certificate.
Don't Leave KES on the Table — Talk to Accmak Global Today
The 2026 KRA Tax Amnesty is the largest tax-relief window of the decade — its benefit is reserved for businesses that act decisively before 31 December 2026.
Accmak Global's tax, accounting, and advisory team supports the full 2026 amnesty lifecycle:
Reconcile your iTax ledger and identify every eligible penalty, interest and fine up to 31 December 2025.
Quantify the cash-flow benefit before the deadline.
Lodge a structured payment plan completing by 31 December 2026, using the maximum instalments KRA permits.
Engage the KRA ADR framework on any active TAT or objection matter tied to eligible periods.
Resolve iTax edge cases (WHT mismatches, manual fines, missing PAYE credits) via KRA account-management escalation.
Issue your Amnesty Certificate and reissue your TCC on the same engagement.
Book your free KRA Tax Amnesty 2026 readiness review today: https://accmakglobal.co.ke/contact
Or call our tax advisory desk directly to book a confidential session — every delayed instalment cycle shrinks the eventual benefit.