When does the KRA tax amnesty 2026 end?

The amnesty closes on December 31, 2026. All outstanding principal tax must be settled by this date to qualify for the 100% waiver of penalties and interest. KRA strongly advises against waiting until December - early action avoids platform congestion and allows time for payment plan approvals.

Does the amnesty waive the principal tax itself?

No. Only qualifying penalties, interest, and fines are waived. The underlying principal tax must still be paid in full. The amnesty is a waiver on the extras, not the original debt.

What taxes does the amnesty cover?

The amnesty covers penalties and interest on outstanding principal tax accumulated up to December 31, 2025. This includes income tax, VAT, PAYE, withholding tax, excise duty, capital gains tax, rental income tax, and turnover tax.

Do I need to apply for the waiver, or is it automatic?

If you already paid your principal tax in full by December 31, 2025, the waiver is automatic - no application needed. KRA's system applies it. If you still owe principal tax, you must settle it (lump sum or payment plan) by December 31, 2026 to unlock the waiver. In that case, the waiver is automatic once the principal is cleared.

Can I get a partial waiver if I pay part of the principal?

No. The waiver requires the full principal to be settled. Partial payment does not unlock a partial waiver. You must clear 100% of the outstanding principal tax to qualify for the 100% penalty and interest waiver.

What if I only have late filing penalties and no principal tax owed?

You qualify for an automatic waiver once you file all outstanding returns. No principal payment needed since nothing is owed. File the returns, and the penalty waiver follows automatically.

Can I use a payment plan to settle the principal?

Yes. You can apply for a structured payment plan through the KRA iTax portal. The plan must be approved by KRA, and all principal tax under the plan must be fully cleared by December 31, 2026. Miss the deadline and the penalties and interest come back.

What happens if I miss the December 31, 2026 deadline?

You lose the amnesty benefit entirely. The penalties and interest on your pre-2026 debt remain fully due. KRA has indicated this is a once-in-a-decade opportunity - the last comparable amnesty closed in 2004. It is unlikely to be extended.

I have an ongoing tax dispute in court. Can I still benefit?

Yes, but you need to use KRA's Alternative Dispute Resolution (ADR) framework. Once the disputed principal amount is settled through ADR, the amnesty benefits are unlocked. You cannot simply wait for the court case to conclude.

KRA Tax Amnesty 2026: Check If You Qualify Before Dec 31

Amnesty eligibility flowchart - find your path to the penalty and interest waiver

What Is the KRA Tax Amnesty 2026?

The KRA tax amnesty 2026, introduced under the Finance Act, 2026, is a time-limited programme that waives 100% of penalties, interest, and fines on qualifying tax liabilities accumulated up to 31 December 2025. It took effect on 1 July 2026 and closes on 31 December 2026.

This is the third amnesty cycle from KRA. The previous two cycles collectively recovered over KES 80.9 billion in principal tax payments while bringing hundreds of thousands of taxpayers back into compliance. In the current cycle KRA has already waived KES 170 billion in fines as of early August 2026, according to reporting on the programme's progress - and KRA has confirmed that filing outstanding returns (including nil returns) automatically triggers the waiver of penalties and interest, with qualifying cases processed in weekly iTax batches. The 2026 programme is expected to be the final broad-based amnesty for the foreseeable future.

Which Taxes Are Covered?

The amnesty covers penalties and interest on principal tax liabilities for all major tax types:

Income Tax
Value Added Tax (VAT)
Pay As You Earn (PAYE)
Withholding Tax
Excise Duty
Capital Gains Tax
Monthly Rental Income Tax
Turnover Tax

Important: Only penalties, interest, and fines on pre-2026 debt are waived. The principal tax must still be paid. Any tax liability arising on or after 1 January 2026 falls entirely outside the amnesty.

Am I Eligible for the Amnesty?

Five scenarios cover every taxpayer. Find yours below - then scroll for exactly what to do.

Scenario	Condition	Action
Principal already paid	You cleared all principal tax by 31 Dec 2025	Automatic waiver - no action needed
Late filing penalties only	You owe no principal tax, only late filing penalties	File outstanding returns → automatic waiver
Still owe principal - can pay lump sum	You have outstanding principal tax from before 2026	Pay full principal by 31 Dec 2026 → waiver applied
Still owe principal - need instalments	Cannot pay the full principal at once	Apply for a payment plan on iTax → clear by 31 Dec 2026 → waiver applied
Ongoing tax dispute	You are in court or ADR over your tax liability	Settle principal through ADR → amnesty unlocked

Staring at a specific figure in iTax? See Got a KRA fine around KES 70,000? You may only owe the principal for how to read your bill and route it through the amnesty.

Known Issue: PRN Not Generating — "KRA Says I Owe but I Already Paid"

Many taxpayers attempting the amnesty are hitting a wall: KRA's iTax portal shows outstanding principal tax even though they already paid. This is usually caused by an iTax allocation error or system glitch where payments were applied to the wrong ledger period or posted to a different tax head.

Without a clean ledger, the system cannot generate a Payment Registration Number (PRN) for the amnesty - you're stuck in a loop where KRA says you owe, but your records show you paid.

KRA has acknowledged these allocation errors and is resolving iTax-related issues through August 2026. If you're stuck, you need to reconcile your iTax ledger against your bank statements and payment receipts - then lodge a correction request with KRA. Our Penalty Waiver service (KES 4,000) includes ledger reconciliation, error identification, and the full amnesty application - we handle the PRN bug for you.

Step-by-Step: How to Apply on iTax

Log in to the KRA iTax portal at itax.kra.go.ke
Check your ledger - Go to the Returns menu and view your outstanding balances, penalties, and interest. If the amount shown doesn't match your records, you may have an allocation error (see above)
Reconcile your iTax ledger against your internal accounting records. Identify any discrepancies before attempting payment
File outstanding returns - If you have unfiled returns, file them first. Late filing penalties will be waived automatically once returns are submitted
Settle principal tax - Pay the outstanding principal in full once the ledger is correct, or navigate to Payments → Apply Payment Plan (new) to set up instalments
Confirm waiver - Once principal is paid, the KRA system automatically applies the waiver. Check your ledger to confirm penalties and interest have been cleared

Note: If you have an ongoing tax dispute, you must pursue KRA's Alternative Dispute Resolution (ADR) framework to settle the principal amount before the amnesty can apply. Note for August 2026: KRA has indicated iTax-related issues will be resolved by the end of August 2026. This page will be updated in place once the fix rolls out - check back or contact us for the current status.

What the Amnesty Does Not Cover

Principal tax: The original tax debt must still be paid in full
Post-2025 liabilities: Any tax debt arising on or after 1 January 2026 is outside the amnesty entirely
Active litigation: Taxpayers in active court disputes must use KRA's ADR framework to settle before amnesty benefits apply

Why This Matters for Your Business

Beyond the direct reduction in liabilities, clearing historical tax penalties has real operational benefits:

Tax Compliance Certificate: KRA now requires a clean ledger before issuing a TCC. Resolving old debt unlocks access to government tenders, work permits, and business licences
Avoid enforcement: Unresolved tax debt can lead to agency notices, bank account freezes, and property attachment. The amnesty is a genuine opportunity to avoid escalation
Clean financial reporting: Unresolved liabilities distort your financial statements and make it harder to forecast cash flow or secure financing

KRA Tax Amnesty 2026: Full Waiver of Penalties and Interest