The Kenya Revenue Authority (KRA) is encouraging taxpayers to take advantage of the ongoing Tax Amnesty Programme and clear any outstanding principal tax debts.

The taxman says that this will improve their compliance status and revenue mobilisation.

Individuals and businesses with tax disputes are further urged to exhaust the appeal process of the new window to benefit from the existing Alternative Tax Dispute Resolution mechanisms.

The Authority stresses that there will be no amnesty, waiver, or write-offs on penalties and interests after 30th June 2024.

Speaking on the sidelines of the Stakeholders Engagement Forum with 250 Sugar Millers drawn from the Western Kenya region, KRA Board Chairman Ndiritu Muriithi stated that the tax amnesty is on until June 30th.

“If you have interests and penalties because you suffered delays in meeting your obligations before, this is the opportunity for you to move them by taking advantage,” he said during the presser at a Kisumu hotel recently.

“We showed them a simplified and in-depth presentation on the use of E-TIMS. The system is relatively new in technology, and businesses would rather embrace it,” Ndiritu says, adding that it will be easier for them to look at their ledger, and of great use while filing returns.

The forum centered on dialogue with the key stakeholders, and how to enhance tax compliance in the sugar industry.

He further informed that they discussed the Finance Bill 2025 and the ongoing waiver of Sh 244.4 billion penalties and interests.

“We shall continue engaging with the members of the public on tax issues across the country.”

Penalties and Interests.

At least half a million Kenyans have heeded the amnesty call, with Sh20.8 billion in overdue principal taxes settled.

The majority had defaulted in paying pending penalties and interests.

So far, a total of Sh 28.7 billion has been self-declared in unpaid taxes.

The Tax Amnesty does not apply to customs and import duties, interest and penalties.

It’s worth noting that the Tax Amnesty Programme was introduced through the Financial Act 2023.

“To allow taxpayers to benefit from amnesty on penalties and interest accrued for periods up to 31st December 2022, upon full payment of their respective principal taxes by 30th June 2024.

iTax System

Taxpayers are advised to apply via the iTax System to file their outstanding taxes up to 31st December 2023.

“Submit a structured payment plan for full settlement of the outstanding principal taxes by 30th June 2024. Tax debts arising from 1st January 2024, and beyond, do not qualify for amnesty.”

All penalties, interest, and principal taxes for debts incurred after this date remain payable.

Revenue Collection Performance

In a related development, KRA has collected revenue totalling Sh2.112 trillion in the financial year (July 2024 to April 2025).

During the period against a target of Sh2.189 trillion, the taxman achieved a 96.5 percent performance, as compared to a 6.1 percent growth from the Sh1.990 trillion collected during the same period in 2023/2024.

KRA registered an upward growth trend in Domestic and Customs Revenues.

The authority collected Sh1.386 trillion in Domestic Taxes between July and April 2024/25, posting a 4.7 percent growth from the same period last year.

Customs revenue grew by 9.1 percent, with Sh722.743 billion collected as compared to Sh662.447 billion in FY 2023/24.

KRA surpassed its target by collecting Sh205.518 billion (11.8 percent) in Agency Revenue, and posted a 37.1 percent growth compared to Sh149.876 billion in FY 2023/24.

The Exchequer Revenue Collection stood at Sh1.906 trillion, with a performance rate of 95.0 percent, marking a 3.6 percent growth from Sh1.840 trillion collected in 2024.