How to Apply for a Kenya Revenue Authority Tax Amnesty or Voluntary Disclosure

Tax compliance in Kenya can feel overwhelming, especially when accumulated penalties and interest make outstanding tax obligations seem insurmountable. The Kenya Revenue Authority (KRA) recognises this challenge and periodically offers relief programmes to help taxpayers regularise their affairs. The two main programmes available are the Tax Amnesty Programme and the Voluntary Tax Disclosure Programme (VTDP), each designed to encourage compliance while offering significant financial relief.

Understanding KRA Tax Amnesty

A tax amnesty is a government-approved programme that waives penalties and interest on unpaid taxes, allowing taxpayers to clear their obligations by paying only the principal tax amount. Kenya has implemented several amnesty programmes over the years, with the most recent running from 27 December 2024 to 30 June 2025 under Section 37E of the Tax Procedures Act, 2015.

The 2024-2025 amnesty programme applies to penalties and interest accrued on tax liabilities for periods up to 31 December 2023. By April 2025, KRA had granted tax relief worth over KES 158 billion in penalties, interest, and fines, with more than 2.9 million taxpayers benefiting from the programme. This demonstrates the scale of tax non-compliance in Kenya and the programme's effectiveness in bringing taxpayers back into the fold.

Who Qualifies for Tax Amnesty

The tax amnesty programme is available to all categories of taxpayers including individuals, companies, partnerships, and other entities registered with KRA. To qualify, you must have outstanding tax liabilities comprising principal tax, penalties, and interest for periods up to 31 December 2023. The programme covers all tax heads administered by KRA including Income Tax, Value Added Tax (VAT), Pay As You Earn (PAYE), Excise Duty, and Withholding Tax.

There are two categories of beneficiaries under the amnesty. First, taxpayers who have already paid their principal tax in full receive an automatic waiver of all related penalties and interest without needing to submit an application. Second, taxpayers who still owe principal tax but cannot make a lump-sum payment can apply for amnesty and propose a structured payment plan to clear the principal amount by the programme deadline.

How to Apply for Tax Amnesty on iTax

The application process is conducted entirely online through the iTax portal. Follow these steps to apply:

Step 1: Log into iTax. Visit itax.kra.go.ke and sign in using your KRA PIN and password. If you have forgotten your password, use the forgot password feature to reset it via your registered email or phone number.

Step 2: Check your tax position. Navigate to the Debt and Enforcement section to review your outstanding liabilities. This shows the breakdown of principal tax, penalties, and interest for each tax period. Understanding your total obligation helps you plan your payment approach.

Step 3: File any outstanding returns. Before applying for amnesty, ensure all your tax returns are filed. The amnesty covers penalties and interest but you must first have accurate assessments in the system. File any nil returns or amended returns as needed.

Step 4: Submit the amnesty application. Navigate to the Tax Amnesty menu on iTax, select the relevant tax obligations, and submit your application. If you can pay the full principal amount immediately, select the lump-sum option. If you need a payment plan, propose realistic instalment amounts and timelines within the programme period.

Step 5: Make payment. Generate a payment slip on iTax and pay through KRA-approved channels including bank deposits, M-Pesa (Paybill 572572), RTGS, or EFT transfers. Keep all payment receipts for your records.

The Voluntary Tax Disclosure Programme (VTDP)

Unlike the time-limited tax amnesty, the Voluntary Tax Disclosure Programme is a permanent feature under the Tax Procedures Act. VTDP allows taxpayers to confidentially disclose tax liabilities that were previously undisclosed to the Commissioner in exchange for relief on penalties and interest related to the disclosed amounts.

VTDP is particularly useful for taxpayers who have undeclared income, unreported transactions, or incorrect tax filings from previous years. The programme encourages honesty by providing a structured path to compliance without the full burden of accumulated penalties.

VTDP Eligibility and Exclusions

To qualify for VTDP, you must meet several conditions. The disclosure must be voluntary, meaning it is made before KRA initiates any audit, investigation, or compliance action against you regarding the specific tax liability. If KRA has already issued an audit notification or is investigating the matter, you cannot use VTDP for those particular liabilities.

The programme also excludes taxpayers who have already been assessed by KRA for the specific liability, those under active investigation by any law enforcement agency, and cases involving fraud or tax evasion that has been formally reported. However, you can use VTDP for different tax periods or tax types not under investigation.

How to Apply for VTDP

The VTDP application process has been automated on iTax since 2023. Here is how to apply:

Step 1: Prepare your disclosure documents. Gather all supporting documents related to the undisclosed income or transactions including financial statements, bank statements, invoices, contracts, and any other evidence that substantiates the disclosed amounts.

Step 2: Log into iTax and access the VTDP module. Navigate to the Voluntary Disclosure section and initiate a new application. Select the tax head, tax period, and nature of the disclosure.

Step 3: Complete the disclosure form. Provide detailed information about the previously undisclosed tax liability including the amount of income, the applicable tax rate, the tax due, and the reasons for the previous non-disclosure. Attach all supporting documents.

Step 4: Submit and await review. KRA reviews the application and may request additional information. The review period typically takes 30 to 90 days, though complex cases may take longer. KRA will assess whether the disclosure meets the programme requirements.

Step 5: Receive the amnesty decision. If approved, KRA issues a VTDP certificate indicating the relief granted on penalties and interest. You then pay the principal tax and any reduced penalties as indicated in the approval notice.

Relief Available Under VTDP

The level of relief depends on when the disclosure is made. For disclosures made before any KRA compliance activity, taxpayers can receive up to 100 percent waiver on penalties and interest. The Tax Procedures Act provides that the Commissioner has discretion to determine the appropriate level of relief based on the circumstances of each case, including the taxpayer's cooperation and the completeness of the disclosure.

Key Differences Between Tax Amnesty and VTDP

While both programmes aim to improve tax compliance, they serve different purposes. Tax amnesty is a time-bound programme that waives penalties and interest on known but unpaid tax obligations. It is available during specific windows announced by the government. VTDP, on the other hand, is a permanent programme for disclosing previously unknown tax liabilities to KRA. The amnesty addresses non-payment issues while VTDP addresses non-disclosure issues.

Tax amnesty is processed largely automatically for taxpayers who have cleared their principal tax. VTDP requires a formal application with supporting documentation and undergoes KRA review. Both programmes can be used together if a taxpayer has both unpaid and undisclosed tax obligations.

Common Mistakes to Avoid

Several mistakes can jeopardise your amnesty or VTDP application. Failing to file all outstanding returns before applying for amnesty is a frequent error. Providing incomplete or inaccurate information in VTDP applications can lead to rejection and potential audit. Missing payment deadlines under the amnesty programme means losing the waiver benefit. Attempting to use VTDP after receiving an audit notification from KRA disqualifies the application.

Another common mistake is ignoring the programme entirely. Many taxpayers assume their non-compliance will go unnoticed. However, KRA has significantly enhanced its data analytics capabilities, third-party data matching from banks and government agencies, and cross-border information exchange through the OECD Common Reporting Standard. These tools increasingly make it difficult to hide undeclared income.

Getting Professional Help

For complex tax situations, engaging a registered tax agent or consultant is highly recommended. The Institute of Certified Public Accountants of Kenya (ICPAK) maintains a directory of qualified tax practitioners. A professional can help you accurately calculate your tax exposure, prepare the necessary documentation, negotiate payment plans with KRA, and ensure your application meets all requirements.

KRA also offers taxpayer education and assistance through its service centres, the KRA Contact Centre (020 4 999 999), and the KRA Care chatbot on their website. These resources can help answer specific questions about your eligibility and the application process.