The National Treasury has proposed extending the tax amnesty deadline to December 31, 2026, allowing defaulters more time to clear outstanding principal tax liabilities without penalties and interest.

• Taxpayers must fully settle all unpaid principal tax by December 31, 2026, to qualify for the waiver on penalties and interest accrued up to December 31, 2025.
• The proposal is part of the Finance Bill, 2026, amending Section 37E of the Tax Procedures Act.
• The Kenya Revenue Authority (KRA) Commissioner will cease recovery of penalties and interest for qualifying taxpayers, who must also avoid accumulating new debts and sign a commitment letter.