Most Kenyan businesses don't know this: KRA is waiving 100% of pre-2026 penalties and interest - until 31 Dec 2026.Check if you qualify →
Kenya Tax Law Library/Amnesty Regulations 2026
The statutory basis of the 2026 amnesty: 100% waiver of penalties, interest and fines on pre-2026 tax arrears for applications made before 31 December 2026.
Why this law matters
This is the cheapest date in Kenyan tax compliance right now: debts reset to principal and businesses return to good standing before the eTIMS-driven enforcement era.
Official text: KRA tax amnesty page
The provisions that matter
What it saysWaives all penalties, interest and fines accrued on tax due before 1 January 2026, for taxpayers who apply within the window and pay the principal tax outstanding.
What it means for your businessThe waiver covers the pain (penalties and interest), not the tax itself — the principal must still be paid, but the accumulated snowball disappears.
What it saysApplications must be made by 31 December 2026; unpaid principal outside the amnesty terms continues attracting the normal s.40 penalty and interest regime.
What it means for your businessAfter the window closes, the old arithmetic returns: 5% + 1% monthly compounding. Waiting is a decision with a price.
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