Editor's Review
KRA has opened a six-month Tax Amnesty Programme giving eligible taxpayers an opportunity to have interest, penalties and fines relating to qualifying tax liabilities waived.
The Kenya Revenue Authority (KRA) has opened a six-month Tax Amnesty Programme giving eligible taxpayers an opportunity to have interest, penalties and fines relating to qualifying tax liabilities waived.
In a statement on Friday, September 4, the authority said the programme took effect on July 1, 2026, and will run until December 31, 2026, covering qualifying tax liabilities for periods up to December 31, 2025.
KRA said the amnesty applies to interest, penalties and fines subject to the conditions set out under the law.
“The amnesty covers interest, penalties and fines relating to tax liabilities for periods up to 31st December, 2025, subject to the conditions provided under the law,” the statement read.
According to KRA, taxpayers with outstanding principal taxes for periods up to December 31, 2025 can qualify by fully paying the qualifying principal tax on or before December 31, 2026.
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Those unable to make a single payment can apply for an Automatic Payment Plan through iTax, but must ensure the entire outstanding principal tax is settled by the December 31 deadline to benefit from the amnesty.
Taxpayers with unfiled returns for periods up to December 31, 2025 are required to file all outstanding returns during the amnesty period.
Those filing returns without outstanding principal taxes, including Nil returns, will automatically qualify for amnesty on late filing penalties.
For taxpayers filing returns that result in principal taxes being due, the amnesty will apply once the principal taxes are fully paid on or before December 31, 2026.
Taxpayers who have no outstanding principal tax for periods up to December 31, 2025 but have outstanding interest, penalties or fines will automatically qualify for the amnesty without making an application.
KRA said taxpayers who meet all the requirements will have the amnesty processed automatically through the iTax system.
“Once all the qualifying conditions are met, the amnesty will be automatically granted, the taxpayer ledger updated and the Amnesty Certificate and notification will be availed through the iTax system,” the statement added.
This comes a day after President William Ruto held talks with representatives of traders and stakeholders in the consolidated cargo sector following concerns over taxation, clearance and handling of consolidated imports.
In a statement on Wednesday, September 2, the Ministry of Investments, Trade and Industry said Ruto's intervention followed disagreements between traders and the Kenya Revenue Authority (KRA) over the applicable benchmark for consolidated cargo.
Following the consultations, the government and traders reached an agreement to resolve the outstanding issues while strengthening compliance, transparency and accountability in the consolidated cargo sector.
Accordingly, KRA will reduce the applicable benchmark for general consolidated cargo from Ksh2.5 million to Ksh2 million.
"The existing rates for ready-made garments, footwear and fabrics will remain unchanged, while the newly negotiated rates for air cargo will remain in effect," the statement read.
According to the ministry, the government will also remove the Advance Cargo Declaration requirement to streamline cargo clearance and facilitate legitimate trade.
Under the agreement, KRA will develop and publish an exclusion list of goods that will not qualify for clearance under the general consolidated cargo framework.
The exclusion list will be informed by the value and nature of the goods, applicable specific tax rates, excisable goods and other relevant customs and revenue considerations.
"This will provide traders and consolidators with certainty on which goods qualify for consolidation and ensure that the new framework is applied consistently and transparently," the statement added.
The ministry said all cargo consolidators will be vetted and registered afresh by KRA and will be required to submit a comprehensive list of the individual traders and importers whose goods they consolidate.
"The deadline for the completion of registration and vetting, and submission of the required trader disclosures, shall be 15 October 2026," the statement further read.
The ministry said the government will also facilitate the establishment and operation of designated de-consolidation centres in Nairobi and Mombasa.
