Treasury Cabinet Secretary John Mbadi has launched an exciting six-month tax amnesty for taxpayers with outstanding tax arrears. This initiative permits individuals to clear their principal tax without worrying about accumulated penalties and interest.
In a recent interview with a local TV station on Wednesday, July 1, 2026, Mbadi elaborated on the key features of the Finance Act, 2026, which took effect on the same day. He emphasized that this measure provides struggling taxpayers an excellent opportunity to regularize their tax affairs.
Mbadi acknowledged that many Kenyans have faced challenges that hindered their ability to pay taxes on time, leading to the accumulation of penalties and interest over the years.
He stated, “Some Kenyans, for various reasons, have not been able to pay their taxes on time. Consequently, they have faced penalties, and interest charges have added up.”
Understanding the Amnesty Program
The newly introduced tax amnesty program allows taxpayers with outstanding tax arrears accrued up to December 2025 to take advantage of a six-month window, from July 1 to December 31, 2026, to settle only the principal tax owed.
“This Act enables those with tax arrears up to 2025 to benefit from a six-month tax amnesty starting today, until December 31, 2026. During this time, you will only need to pay the principal tax,” Mbadi explained.
He encouraged eligible taxpayers to seize this opportunity by visiting the Kenya Revenue Authority (KRA) and clearing their principal tax within the designated timeframe.
“Simply present yourself to the tax authority and pay the principal tax, and all interest and penalties will be waived,” he added.
This tax amnesty is one of several relief measures introduced under the Finance Act, 2026, designed to lighten the tax burden on Kenyans, improve voluntary tax compliance, and enhance revenue collection without adding extra financial pressure on taxpayers.
