KRA Allows Kenyans to Pay Principal Tax in Instalments Under Amnesty

Kenyans struggling to clear outstanding principal taxes in one payment can now settle their debts through instalments under a new KRA arrangement.

The Kenya Revenue Authority has confirmed that taxpayers can use an Automatic Payment Plan to clear principal tax while remaining eligible for the 2026 Tax Amnesty Programme.

How the Instalment Plan Works

Taxpayers who cannot afford to settle their principal tax at once can apply for an Automatic Payment Plan through the iTax portal.

Once the application is approved, a Payment Registration Number will be generated, allowing the taxpayer to make payments towards the outstanding principal amount.

However, the entire principal tax must be cleared by December 31, 2026, for the taxpayer to qualify for the amnesty benefits.

KRA has warned that failure to settle the full principal amount by the deadline could result in the taxpayer losing eligibility for the waiver.

Penalties and Interest to Be Waived

The 2026 Tax Amnesty Programme provides for a full waiver of penalties, interest and fines attached to eligible tax debts accrued up to December 31, 2025.

Taxpayers with outstanding principal taxes from earlier periods can therefore benefit by settling the underlying tax debt within the amnesty period.

The waiver is designed to remove accumulated penalties and interest once the required principal tax has been fully paid.

Steps to Apply Through iTax

Taxpayers seeking to use the instalment option are required to log into their KRA iTax accounts.

They should select Payment, choose Apply for Payment Plan (New), complete the application and submit it for approval.

After approval, the taxpayer can generate a Payment Registration Number and use it to make instalment payments towards the principal tax.

KRA has also clarified that taxpayers whose only outstanding liability is a late filing penalty may qualify for the amnesty if they have subsequently filed all required returns and have no principal tax outstanding.

In such cases, the applicable waiver will be processed automatically without requiring a separate application.

Taxpayers have nevertheless been advised to check their iTax ledgers to confirm that eligible penalties have been removed before the amnesty deadline.