KRA Announces New Way to Clear Tax Debts in Installments

Taxpayers owing principal taxes can now clear their debts in flexible installments rather than a single lump sum, the Kenya Revenue Authority (KRA) has announced.

Under the 2026 Tax Amnesty Programme, taxpayers who settle their outstanding principal tax balances by the December 31, 2026, deadline will qualify for a 100 percent waiver on accumulated penalties and interest.

To support individuals and businesses unable to pay their balances upfront, the tax collector has introduced the Automatic Payment Plan (APP) on the iTax portal. The plan allows taxpayers to structure installment payments while remaining eligible for full penalty relief upon completion.

“Unable to clear your principal tax in one go? Apply for an Automatic Payment Plan on iTax and pay in installments,” KRA stated. “Pay in full by December 31, 2026, and penalties and interest will be waived automatically.”

The authority cautioned that missing the year-end deadline will invalidate eligibility for the penalty waiver, causing remaining balances to attract standard penalties and interest.

Step-by-Step: How to Apply for the Automatic Payment Plan

Taxpayers can activate an installment plan directly through the iTax platform:

1. Log into the KRA iTax portal.
2. Navigate to the Payments menu.
3. Click on Apply for Payment Plan (New).
4. Fill in the required details and submit the application.
5. Once approved, generate a Payment Registration Number (PRN).
6. Use the PRN to make scheduled installment payments.

Scope of the 2026 Tax Amnesty

The 2026 amnesty waives all penalties, interest, and fines accrued on tax liabilities up to December 31, 2025. Taxpayers with unpaid principal taxes from periods preceding 2026 can benefit fully by settling the core tax amount within the amnesty window.

Additionally, individuals whose only liability involves late filing fines, such as the standard Ksh2,000 penalty for submitting returns past the due date, will automatically qualify for a complete waiver, provided all pending returns have been filed and no principal tax remains outstanding.

KRA confirmed that the waiver applies automatically without requiring a separate application for late filing penalties. However, taxpayers should monitor their iTax ledgers regularly to verify that their balances update accordingly.

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