The Kenya Revenue Authority (KRA) has announced a new flexible installment plan for taxpayers to clear their outstanding principal tax balances. This move is part of the 2026 Tax Amnesty Programme, which allows taxpayers to settle their debts in installments rather than a single lump sum. The program aims to support individuals and businesses unable to pay their balances upfront.
Under the 2026 Tax Amnesty Programme, taxpayers who settle their outstanding principal tax balances by the December 31, 2026, deadline will qualify for a 100 percent waiver on accumulated penalties and interest. This waiver applies to all penalties, interest, and fines accrued on tax liabilities up to December 31, 2025.
To facilitate the installment plan, the KRA has introduced the Automatic Payment Plan (APP) on the iTax portal. Taxpayers can activate an installment plan directly through the iTax platform by logging in, navigating to the Payments menu, and clicking on Apply for Payment Plan (New).
Once the application is approved, a Payment Registration Number (PRN) will be generated, which taxpayers can use to make scheduled installment payments. The KRA has cautioned that missing the year-end deadline will invalidate eligibility for the penalty waiver, causing remaining balances to attract standard penalties and interest.
The 2026 amnesty program also waives all penalties, interest, and fines accrued on tax liabilities up to December 31, 2025, for taxpayers with unpaid principal taxes from periods preceding 2026. Individuals whose only liability involves late filing fines will automatically qualify for a complete waiver, provided all pending returns have been filed and no principal tax remains outstanding.
The KRA confirmed that the waiver applies automatically without requiring a separate application for late filing penalties. However, taxpayers should monitor their iTax ledgers regularly to verify that their balances update accordingly. This move is expected to provide relief to many taxpayers who have been struggling to clear their tax debts.
The KRA has encouraged taxpayers to take advantage of the 2026 Tax Amnesty Programme and clear their tax debts in installments. By doing so, taxpayers can avoid accumulating penalties and interest and make it easier to manage their tax obligations.
Key points
- Taxpayers can clear their outstanding principal tax balances in flexible installments rather than a single lump sum.
- The 2026 Tax Amnesty Programme offers a 100 percent waiver on accumulated penalties and interest for taxpayers who settle their outstanding principal tax balances by December 31, 2026.
- Taxpayers can apply for the Automatic Payment Plan on the iTax portal to structure installment payments and remain eligible for full penalty relief upon completion.
