The Kenya Revenue Authority (KRA) has introduced a significant measure to assist taxpayers in settling outstanding principal tax liabilities. Under the newly announced 2026 Tax Amnesty Programme, individuals and businesses will now have the option to clear their tax debts through flexible installment payments, rather than being required to remit the full amount in a single lump sum. This initiative aims to enhance tax compliance and provide much-needed relief to those facing financial constraints.
The core benefit of the 2026 Tax Amnesty Programme is a 100 percent waiver on accumulated penalties and interest, provided that all outstanding principal tax balances are settled by the stipulated deadline of December 31, 2026. To support taxpayers who may not be in a position to pay their balances upfront, the KRA has launched the Automatic Payment Plan (APP) directly on its iTax portal. This digital tool empowers taxpayers to structure their installment payments while retaining their eligibility for the full penalty and interest relief upon successful completion of the payment schedule.
“Unable to clear your principal tax in one go? Apply for an Automatic Payment Plan on iTax and pay in installments,” the KRA stated in its announcement. The authority further emphasised that prompt settlement by the year-end deadline is crucial, as missing this window will invalidate eligibility for the penalty waiver, leading to the imposition of standard penalties and interest on any remaining balances.
The process for activating an installment plan is designed to be straightforward and accessible via the KRA iTax platform. Taxpayers are required to log into their iTax portal, navigate to the ‘Payments’ menu, and select ‘Apply for Payment Plan (New)’. Following the submission of the necessary details and subsequent approval, taxpayers will be able to generate a Payment Registration Number (PRN) to facilitate their scheduled installment payments.
The scope of the 2026 Tax Amnesty is comprehensive, offering a waiver on all penalties, interest, and fines accrued on tax liabilities up to December 31, 2025. This means that taxpayers with unpaid principal taxes from periods prior to 2026 can benefit from the amnesty by settling the core tax amount within the designated window. Furthermore, individuals whose sole outstanding liability consists of late filing fines, such as the standard Ksh2,000 penalty for delayed submission of returns, will automatically qualify for a complete waiver. This automatic waiver is contingent upon the filing of all pending returns and the absence of any outstanding principal tax. The KRA has confirmed that this waiver for late filing penalties does not necessitate a separate application, though taxpayers are advised to regularly monitor their iTax ledgers to ensure their balances are updated accordingly.