The Kenya Revenue Authority (KRA) netted Sh43.9 billion from its just-concluded tax amnesty programme, which ran from September September to June 30, narrowly missing its Sh50 billion target from the window.
The taxman says 2,617,111 taxpayers were granted amnesty in the period under which the agency waived penalties, interest, and fines on debts where the taxpayers had paid the full principal tax before December 31, 2022.
“Through the tax amnesty programme, KRA collected Sh43.9 billion. This is after 2,617,111 taxpayers were granted amnesty in the financial year 2023–24,” the agency says in remarks accompanying its performance in the last fiscal year.
The disclosure of the amounts raised from the amnesty comes against the backdrop of the failed push to extend the window to March 2025 after the withdrawal of the Finance Bill 2024.
The National Assembly Finance and National Planning Committee, in a late push, had sought to extend the amnesty window to March 31, 2025, noting that some small businesses had applied to the programme but were yet to clear the outstanding payment, leaving them exposed by the June 30 deadline.
The Kamukunji Community Empowerment Centre, which represents small traders and lobbies, had asked the committee for the amnesty extension, noting that an expanded window would encourage the self-disclosure of liabilities and boost revenue collection for the taxman.
“When the Finance Act 2023 introduced the tax amnesty, 1,058,734 Kenyans applied with a principal tax of Sh42 billion. So far, Sh31.2 billion has been paid by the taxpayers, while a balance of Sh10.7 billion remains. Extending the amnesty gives Kenyans with an outstanding payment a reprieve from penalties and interest. This marks a big relief for Kenyans worried about the expiry,” said Finance and National Planning Committee chairman Kuria Kimani on June 25.
The amnesty was introduced through the Finance Act 2023 and was restricted to taxpayers liable to tax avoidance penalties.
Taxpayers were still allowed to apply for amnesty even where the principal tax had not been cleared by presenting a payment plan for the outstanding amount.
Following the expiration of the amnesty, taxpayers with outstanding balances have seen penalties and interest accrue once more.
The programme was expected to boost out-of-court tax dispute settlements, giving the taxman the chance to settle long-standing disputes.
The KRA had expected to raise Sh50 billion from the amnesty window and had identified 2.8 million taxpayers with penalties and interest who qualified for the programme.
The tax amnesty plan followed the voluntary tax disclosure programme, which ran until the end of December last year and allowed taxpayers to confidentially disclose tax liabilities previously undisclosed and, in return, get relief on penalties and interest.
