NAIROBI, Kenya – More than three million Kenyan taxpayers have benefited from the ongoing tax amnesty, with the Kenya Revenue Authority (KRA) waiving Sh165 billion in penalties, interest, and fines just five months into the programme.
Launched in December 2023, the amnesty has seen strong uptake from individuals and businesses hoping to clean up their tax records ahead of the June 30, 2025 deadline.
The second phase of the programme targets interest and penalties accrued up to December 2023.
In a statement issued last Thursday, KRA confirmed it had collected Sh13.5 billion in revenue between December and April under the initiative, while offering financial reprieve to millions grappling with historical tax burdens.
“The Tax Amnesty Programme has seen strong uptake, generating Sh13.5 billion in revenue between December 2024 and April 2025. KRA has waived Sh164.9 billion in penalties and interest, benefiting over three million taxpayers,” the agency said.
Under the terms of the amnesty, taxpayers with no outstanding principal tax as of December 2023 have automatically had their penalties written off.
Those with unpaid principal taxes can still qualify for a waiver—provided they pay off their dues or commit to a payment plan before the June deadline.
This latest initiative builds on an earlier round of amnesty, during which KRA forgave Sh508 billion in accumulated penalties for taxpayers who settled their dues up to December 2022.
The amnesty is part of KRA’s broader effort to widen the tax net, improve compliance, and ease the financial pressure on Kenyans amid a sluggish economy.
In recent months, the authority has introduced a number of reforms, including the Electronic Rental Income Tax System (eRITS) to streamline landlord tax compliance, and a Centralised Release Office to boost customs efficiency.
Despite a challenging economic backdrop, KRA reported a 3.6 per cent increase in total revenue collection in the 10 months to April 2024, reaching Sh1.91 trillion.
Agency collections contributed an additional Sh205.52 billion, surpassing targets for the period.
Domestic taxes rose by 4.7 per cent to Sh1.39 trillion, while customs revenue increased by 9.1 per cent to Sh722.74 billion.
However, these gains have come as the wider economy continues to show signs of strain.
Credit to the private sector grew by just 0.2 per cent in March, while the non-performing loans ratio surged to 17.2 per cent in February.
Key sectors such as real estate, trade, manufacturing, and construction remain under pressure.
At the same time, export earnings have dipped, with tea and horticulture—two of Kenya’s top foreign exchange earners—posting declines of 18.6 and 6.2 per cent respectively.
With less than two months left before the amnesty window closes, KRA is urging eligible taxpayers to take advantage of the opportunity to regularise their tax status and avoid future penalties.
