When KRA can waive tax penalties and interest
Tax Procedures Act · sources read 5 Oct 2026
Penalties and interest can now be waived only when they were caused by an iTax error, a delay in updating iTax, an iTax malfunction, a duplicated penalty, or a wrongly registered tax obligation. The Commissioner can waive up to KSh 2,000,000 caused by an iTax error; other waivers go to the Cabinet Secretary on the Commissioner's recommendation.
- Where
- KRA, through iTax or your Tax Service Office
Steps
- Check the written penalty demand. A penalty is only payable after KRA notifies you in writing, giving a due date at least 30 days later.
- If the penalty or interest came from an iTax problem, a duplicate, or a wrong obligation on your PIN, ask KRA to waive it on that ground.
- For tax periods up to 31 December 2025, the 2026 tax amnesty is the separate route: pay the principal tax by 31 December 2026 and the penalties and interest are cancelled.
Watch out
- Any other reason, such as being unable to pay, no longer qualifies. Waivers on other grounds ended on 1 July 2025.
- Penalties and interest for periods from 1 January 2026 must be paid in full unless they fall under a system error or wrong obligation.
- One act or omission can't attract more than one penalty, or both a penalty and a prosecution, under the same tax law.
Who this covers
- Taxpayers whose penalty or interest came from an iTax error, a delay in updating iTax, an iTax malfunction, a duplicated penalty or interest, or a wrongly registered tax obligation.
- The Commissioner can decide directly where the amount is KSh 2,000,000 or less and was caused by an iTax error.
Official sources (2)
- Tax Procedures Act (Cap. 469B), consolidated new.kenyalaw.org · read 5 Oct 2026
- 2026 Tax Amnesty Programme at a Glance kra.go.ke · read 5 Oct 2026