For anyone moving goods in and out of the country, this is more than just a headline offer, it’s an opportunity, but only if you know how to navigate it.

What Does the Tax Amnesty Actually Cover?

This amnesty, revived by the Finance Act 2026, is pretty straightforward: pay the tax principal for any debt up to 31st December 2025 and the penalties, interest, and fines vanish. But how you benefit depends on your tax situation.

• If you’d already cleared your principal by 31st December 2025 but still had penalties or interest, the waiver should apply automatically. No paperwork needed.

• If your only issue is late-filing penalties, just file all outstanding returns. The penalties are then wiped clean.

• If you owe principal tax from before 2026, pay it in full before 31st December 2026 and all add-ons disappear.

If you can’t pay the principal in one go, there’s the option to apply for a payment plan through iTax. But here’s the catch: everything must be settled by 31st December 2026. Any plan stretching into 2027 won’t make the cut.

Remember, the amnesty only forgives penalties and interest. It never touches the original tax. And it doesn’t apply to anything that arose after 1st January 2026. Those new charges are still fully payable, principal and all.

The tax amnesty falls under the Tax Procedures Act. Import duties, on the other hand, are governed by the East African Community Customs Management Act (EACCMA). KRA has made it clear before: taxes under EACCMA such as customs duties and related penalties are not eligible for amnesty.

So, if you import goods, check your liabilities carefully:

• Domestic taxes like corporation tax, PAYE, VAT, withholding tax, and turnover tax (for periods up to 2025) likely qualify for the amnesty.

• Import duties and related penalties assessed under EACCMA do not.

Don’t make the mistake of assuming that clearing one bill clears them all. You wouldn’t want to find out at the last minute that your customs debt is still hanging over your business.

The smart move? Ask KRA in writing (either through iTax or your local Tax Service Office) which of your specific liabilities qualify for amnesty. It’s the best way to avoid surprises.

Why Clearing Your Ledger Matters

The amnesty is about more than erasing penalties. For businesses trading across borders, it’s also about getting a Tax Compliance Certificate (TCC), which is something you’ll need for tenders, supplier onboarding, permits, licences, and even for opening accounts with most banks.

To get a TCC, KRA requires that you’ve filed all tax returns, paid what’s due, registered on eTIMS or TIMS (if you’re in business), complied with VAT requirements, and cleared all outstanding liabilities or had a payment plan approved.

Here’s the maths: cleaning up now costs only the principal. Wait until January, and you’re back to paying penalties and interest too.

Make sure the option is live for your account before pencilling in a payment schedule.

And if you need a payment plan, get started early. You’ll need enough time to get approval and finish your payments before the window closes, especially since the last quarter is typically the busiest for importers and exporters.

Your Action Plan

• Log in to iTax and review every outstanding tax period. Separate principal, penalties, and interest.

• Split your liabilities by law: which ones are domestic, and which relate to imports? This step is easy to skip, but it’s crucial.

• Get confirmation in writing from KRA about which of your debts qualify for amnesty.

• Decide if you’ll pay in a lump sum or need a plan, making sure any plan completes by 31 December.

• If late filing is your only issue, file those returns and you’re sorted.

• For disputed liabilities, consider Alternative Dispute Resolution. KRA is encouraging this for taxpayers with open disputes.

• Check what it would take to get a TCC today, and if it’s cheaper now versus waiting until January.

This amnesty isn’t a rescue package for struggling businesses. It’s a discount on a job that trading businesses have to do anyway. And it’s only available until 31st December.

Remember, this is just a one-off clean-up. The next tax cycle starts fresh, and the same old paperwork can pile up again in no time. Assign responsibility for tax documentation now, because the next deadline will be here before you know it.

For the customs side of things, a DHL Express business account means your paperwork is handled by professionals, with seamless door-to-door service across 220 countries and scalable rates. That’s one less thing to worry about, and one more reason to focus on growing your business.

Settle your old tax debt before December, and you’ll be ready for whatever comes next.

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