Wamuzi News Ke
The Kenya Revenue Authority (KRA) has quietly written off a jaw-dropping Sh165 billion in tax penalties, fines, and accrued interest—all in just five months! Over three million taxpayers have cashed in on what could be one of the most generous amnesty deals in Kenya’s history.
Launched in December 2023, the little-publicized tax pardon has unleashed a nationwide scramble among both corporate giants and individual defaulters to clean up their tax records before the fast-approaching June 30, 2025 deadline.
In a bombshell announcement made last Thursday, KRA revealed that the program had not only sparked a taxpayer rush but also pulled in Sh13.5 billion in actual revenue between December 2024 and April 2025—all while forgiving a colossal Sh164.9 billion in charges that would have otherwise crushed many under the weight of historical tax burdens.
But that’s not all. The second phase of this initiative, which covers penalties and interest accumulated up to December 2023, is currently in full swing. Here’s the kicker: any taxpayer who clears their principal tax dues by June 30, 2025, walks away with a full waiver. And if your account had no pending taxes by December 2023? Your penalties vanish automatically!
Even those still in debt aren’t out of luck—KRA is encouraging them to apply for payment plans and settle up before the clock runs out.
This shocking wave of financial forgiveness follows an even bigger wipeout: a staggering Sh508 billion in tax penalties and interest waived during a prior round that ended in December 2022.
The amnesty program is part of a bold government strategy to boost compliance and broaden the tax net, despite an economy under pressure. KRA has rolled out additional reforms including a Centralised Release Office to turbocharge customs operations and a high-tech Electronic Rental Income Tax System to track landlords and manage rental filings with precision.
Despite economic turbulence—weak private sector performance, plummeting trade, and rising bad loans—the taxman has defied odds. In the ten months up to April 2024, KRA pulled in an astonishing Sh1.91 trillion, up 3.6%. Out of this, Sh205.52 billion came from aggressive enforcement and collection efforts.
Even more impressive: domestic tax collections jumped by 4.7% to hit Sh1.39 trillion, and customs revenues soared 9.1% to reach Sh722.74 billion.
However, it’s not all roses. The economic strain is biting hard. Private sector lending remains nearly frozen, creeping up by just 0.2% in March, while non-performing loans have ballooned to a terrifying 17.2%—hammering sectors like real estate, manufacturing, trade, and construction.
On the export front, things look bleak: tea exports have plunged by 18.6% and horticulture by 6.2%, signaling stormy times ahead.
But for now, the shocker remains: KRA has effectively hit the reset button on billions in penalties, rewriting the financial fate of millions of Kenyans.
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