Old KRA debts tend to grow quietly. Penalties and interest can end up larger than the tax itself. Until 31 December 2026, KRA will waive them, but only if the original tax is paid in full first.
Who qualifies
The amnesty covers tax debts that built up on or before 31 December 2025. Penalties and interest from January 2026 onwards are not covered.
| Your situation | What happens |
|---|---|
| Principal tax already paid, only penalties and interest left | Waived automatically |
| Principal tax still unpaid | Pay it in full by 31 December, in one go or through an iTax payment plan |
| Returns not filed for those years | File them before 31 December and late filing penalties fall away where no tax is due |
| Tax in dispute with KRA | Settle the principal through dispute resolution, then the amnesty applies |
The payment plan
If you cannot pay in one go, apply for a payment plan on iTax under Payments and choose the amnesty periods. Every instalment must be cleared by 31 December 2026. A plan that runs into January loses the waiver.
When you generate the payment slip, set the amount to the principal only. iTax will not stop you paying penalties by mistake.
Why it is worth doing now
- Tax compliance certificate. Old debts block your certificate. Tenders, licences and bank facilities ask for one. Our certificate guide explains why.
- Cash in December. December already carries PAYE, VAT, the fourth instalment tax payment and bonuses. Spreading the principal over November and December is easier than one payment on the 31st.
- iTax delays. Some amnesty transactions have needed KRA to fix them by hand. Leave time for that.
Five steps for this week
- Download your iTax ledger and list every debt from before 2026.
- Split each one into principal, penalties and interest.
- File any returns still missing for those years.
- Pay the principal, or apply for a payment plan that ends by 31 December.
- Check the ledger in January to confirm the penalties and interest have gone.
Not sure what you owe KRA?
We pull your iTax ledger, separate principal from penalties and interest, file missing returns and set up the payment plan before the amnesty closes.
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