The Finance Act, 2026 has extended Kenya’s tax amnesty to cover liabilities accrued up to 31 December 2025, with the programme running until 31 December 2026. If you’ve already paid the principal tax for the qualifying period, the penalties and interest attached to it are waived automatically, no application needed. Anything from 1 January 2026 onwards falls outside the programme and stays fully due, penalties and all.
If the principal hasn’t been paid yet, the relief isn’t automatic, but it’s still on the table. You’ll need to engage KRA, agree the outstanding amount, and clear it before the deadline. Thereafter, the penalties and interest fall away.
This is the third amnesty of its kind in roughly three years, after similar programmes under the Finance Act, 2023 and the Tax Procedures (Amendment) Act, 2024. There’s no promise this one will come around again, so for businesses sitting on old, unresolved tax debt, this is a real chance to clear the books without paying the full cost of years of accumulated penalties and interest.
For a lot of taxpayers, penalties and interest have grown to match the original tax owed, which makes this amnesty a strategic opportunity to clear outstanding tax debts affordably. There’s also a compliance angle: businesses will be able to obtain valid Tax Compliance Certificates once their ledgers are cleared, enabling them to freely participate in tenders, government payments, licence renewals, and bank facilities.
Businesses and taxpayers with ongoing tax disputes with KRA also have a golden opportunity to amicably resolve their matters without the imposition of penalties and interest. If the principal can be agreed and settled within the amnesty period, resolving things now rather than waiting for the dispute to play out in full can still secure the waiver. Once the deadline passes, that option disappears.
Businesses are encouraged to use this opportunity to review their ledgers and tax compliance position, and settle any outstanding debts before the window closes. A clean, reconciled tax record is one of the simplest ways to safeguard a business’s long-term stability and growth.
If you’re looking to make use of this window, reach out to your usual contact at CMC Advocates.
