KRA Announces Waiver on Tax Penalties for All Kenyans

Kenya Revenue Authority Commissioner General Humphrey Wattanga on Monday revealed that the taxman will waive tax interest accrued before December 2022 if principal tax is settled in full.

In a statement, Wattanga noted that the tax interest write-off is in line with the Tax Amnesty Program proposed in the Finance Act 2023.

The move is expected to boost voluntary tax compliance among taxpayers across the country.

“KRA is constantly determined to enhance voluntary compliance among taxpayers and has made significant strides in this field. One of the key pillars to enhance voluntary compliance is the Tax Amnesty Program introduced through The Finance Act 2023,” he stated.

Kenya Revenue Authority Commissioner General Humphrey Wattanga


Commission on Revenue

“In the spirit of giving back to taxpayers, we are calling on all who have accrued interests up to December 2022, to pay up the principal taxes due, so that we can write off the penalties and interests accrued.”

According to the Finance Act, the amnesty programme will run from September 1, 2023, to June 30, 2024, and can be applied for in KRA’s iTax system.

Those who qualify for the programme include individuals who accrued penalties and interest but no principal taxes for periods up to December 31, 2022, or individuals who have principal tax that has accrued interest and they pay the principal tax.

The Act also demands that the application for the amnesty is accompanied by a payment plan proposal for the outstanding principal taxes.

The development is in line with President William Ruto’s goal of waiving the accrued penalties on pending taxes incurred before January 1, 2023.

At the beginning of September, the Head of State noted that his decision to waive the penalties was a result of concerns raised by Kenyans over accrued interests.

Ruto further added that the waiver will ease the burden on Kenyans and align with the government’s plan for a fair and inclusive economy.

“From September 1, 2023, to June 2024, you will have the opportunity to settle only the principal tax amount of outstanding tax debts incurred before January 1 2023 as we are waiving penalties and interests over the nine-month period,” he announced at the time.

“We are now making an offer to our taxpayers to have an opportunity to only pay the principal. I expect the taxpaying public will take advantage.”

President William Ruto at KICC during the Africa Youth Climate Summit on Sunday, September 3, 2023


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