FIRST PAYMENT UNLOCKS COMPLIANCE UNDER KRA TAX AMNESTY DEAL

FIRST PAYMENT UNLOCKS COMPLIANCE UNDER KRA TAX AMNESTY DEAL
Taxpayers with historical tax debts can now seek relief from some enforcement measures after making the first instalment under Kenya Revenue Authority’s 2026 tax amnesty payment plan.

KRA has confirmed that taxpayers with qualifying outstanding principal tax can apply for a structured payment plan through the iTax system. The programme covers tax liabilities accrued on or before December 31, 2025. 

According to KRA, taxpayers who have paid the first instalment of an approved payment plan may request relaxation or lifting of agency notices and other enforcement measures, as well as facilitation of their Tax Compliance Certificate (TCC) application. They are required to provide proof of the payment and the payment plan through iTax. 

The arrangement, however, does not cancel the outstanding principal tax. KRA requires taxpayers using the payment-plan option to clear the entire qualifying principal amount by December 31, 2026 in order to benefit from the amnesty on penalties, interest and fines. 

KRA said officers will first verify that all valid debts have been included in the taxpayer's payment plan before facilitating the TCC application. Compliance certificates may subsequently be withdrawn if a taxpayer defaults on the agreed instalments, with enforcement measures potentially reinstated. 

The 2026 tax amnesty, which runs from July 1 to December 31, 2026, provides a 100 percent waiver of qualifying penalties, interest and fines attached to tax debts accrued up to December 31, 2025, subject to the conditions of the programme. Tax liabilities arising from January 1, 2026 are not covered. 

KRA says taxpayers who have no outstanding principal tax but have qualifying penalties, interest or fines can receive the applicable waiver automatically, while those with unpaid principal tax must settle it either in full or through an approved payment plan. 

The authority has urged taxpayers with historical liabilities to regularise their tax affairs before the December 31, 2026 deadline to avoid losing the amnesty benefits and facing further enforcement.