The Kenya Revenue Authority (KRA) has introduced a new measure to enhance tax compliance, allowing taxpayers with historical liabilities to seek Tax Compliance Certificates (TCC) after making the first payment under a structured repayment plan. This move is part of the ongoing tax amnesty program, which began on July 1 and will run until December 31, 2026. Taxpayers struggling to clear old tax debts can now seek TCCs after making the first payment, but KRA has warned that the relief will be withdrawn if they fail to keep up with subsequent installments.
According to KRA, taxpayers with historical liabilities covered by the tax amnesty may spread their payments over six equal monthly installments instead of settling the debt in one lump sum. However, those seeking compliance relief must first list all valid outstanding debts in their payment plans on the iTax system. This requirement must be met before an application for a TCC can be processed. KRA officers will verify the payment before facilitating the compliance certificate application.
To qualify for a TCC, taxpayers must provide proof of payment along with the payment plan in iTax. The officer validates that all debts were included in the payment plan and then immediately proceeds to facilitate the taxpayer's application of the TCC. KRA has emphasized that taxpayers must continue monitoring their repayment schedules after receiving the compliance relief. Failure to make any of the agreed monthly payments could trigger fresh enforcement measures.
The arrangement forms part of the third phase of KRA's tax amnesty, which aims to allow eligible taxpayers to have penalties, interest, and fines waived in full on tax debts accumulated up to December 31, 2025. The program, reintroduced under the Finance Act, 2026, has already shown promising results, with two previous programs resulting in the recovery of Sh80.9 billion in principal tax and helping thousands of taxpayers return to compliance.
Different categories of taxpayers have been provided with various routes to benefit from the waiver. Taxpayers who have already cleared their principal tax but still have penalties arising from late filing will have the penalties waived automatically once they file all outstanding returns. Those who had settled their principal tax liabilities in full by December 31, 2025, will also receive automatic waivers of the related penalties and interest without being required to make a separate application.
Taxpayers with outstanding principal tax can qualify by paying the full amount during the amnesty period, after which the related penalties and interest will be written off. For taxpayers who cannot afford to clear their principal tax in one payment, KRA allows them to apply for a structured repayment plan through iTax. They must, however, ensure the entire principal tax is paid by December 31, 2026, to qualify for the waiver.
The amnesty does not cover tax liabilities that arose from January 1, 2026, and such debts remain subject to full payment. KRA has warned taxpayers that if a payment installment is missed or defaulted, the authority shall take enforcement actions, including possible reinstatement of agency notices and withdrawal of TCCs. This measure aims to encourage taxpayers to meet their obligations and take advantage of the amnesty program.
Key points
- Taxpayers with historical liabilities can seek Tax Compliance Certificates after making the first payment under a structured repayment plan.
- The tax amnesty program, which began on July 1, aims to allow eligible taxpayers to have penalties, interest, and fines waived in full on tax debts accumulated up to December 31, 2025.
- KRA has warned that the relief will be withdrawn if taxpayers fail to keep up with subsequent installments.
