KRA Waives KSh 170 Billion in Penalties under Tax Amnesty

A Major Boost for Taxpayers
The Kenya Revenue Authority (KRA) has waived an estimated KSh 170 billion in tax penalties, interest, and fines as part of its expanded tax amnesty programme. This significant relief has already helped over three million taxpayers, offering them a clean slate to regularize their tax status.

The Amnesty Explained
Launched in December 2024, this latest phase of the amnesty covers tax obligations up to December 31, 2023. Under the programme, individuals and businesses that pay their principal tax liabilities by June 30, 2025, will have all penalties and interest automatically waived.

Taxpayers with no outstanding principal amounts also qualify for automatic clearance, removing old burdens and giving them a chance to reset their compliance status.

Strong Uptake and Revenue Gains
In just five months, from December to April, KRA collected KSh 13.5 billion in principal taxes through the amnesty programme. This shows a robust uptake, with many taxpayers seizing the opportunity to normalize their tax affairs without the weight of accumulated penalties.

In the previous phase that ended in December 2023, KRA waived an even larger amount—KSh 508 billion—after successful payments of principal taxes were made.

Driving Tax Reform and Expansion
The tax amnesty is part of a broader revenue reform plan. KRA has also improved its customs enforcement, launched new digital systems for rental income tax, and enhanced data analytics to track non-compliant taxpayers.

These measures are beginning to show results. Kenya recorded a 3.6% growth in tax revenue, with KRA collecting KSh 1.91 trillion by April 2024.

Economic Context
This amnesty comes at a time when Kenya’s economy is under pressure due to sluggish private sector growth, limited access to credit, and declining export earnings. Still, KRA’s efforts in expanding the tax base offer hope of increased fiscal stability.

Deadline Looms: June 30, 2025
With the amnesty set to close on June 30, KRA is urging all eligible taxpayers—especially small businesses and informal sector players—to come forward, pay what they owe, and benefit from the waiver.

Looking Ahead
Experts say the success of this initiative may lay the groundwork for deeper tax reforms, including legislation to regularly review penalty structures and incentivize long-term compliance.

KRA Commissioner General Humphrey Wattanga reaffirmed the authority’s commitment to building a fair, transparent, and efficient tax system:

“This amnesty is not just about waivers. It’s about trust, accountability, and resetting the relationship between the taxpayer and the taxman.”

For More Information:
Visit the official KRA portal or contact your local KRA office to check your eligibility and settle any outstanding tax liabilities.

Photo: kra

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