Kenya’s tax authority has so far collected KES 3.4 billion from an ongoing tax amnesty program aimed at improving revenue collection.
The program, which began on September 1, allows qualifying taxpayers to apply for a full waiver of any penalties and interest accrued on outstanding tax debts through December 31, 2022. To benefit, applicants only need to pay the principal amount of tax owed with no additional fees.
“More than 17,000 taxpayers have already applied for the tax amnesty and we expect that number to grow substantially as we continue our nationwide awareness campaign,” said Caroline Rotich, chief manager of the Domestic Taxes Department at the Kenya Revenue Authority.
Rotich explained the authority has identified 2.8 million taxpayers who are eligible for the amnesty program based on historical records. If successful, the initiative could result in billions of shillings in waived penalties and interest charges, significantly reducing debts owed to the government.
Read more: Qatar Airways partners with SpaceX’s Starlink for in-flight Wi-Fi
The KRA has also been encouraging those with ongoing tax-related court cases to consider settling out of court in order to take advantage of the amnesty benefits.
“Through our Alternative Dispute Resolution framework, taxpayers can resolve outstanding disputes through mediation rather than through the judicial process,” Rotich said. “This allows for faster, mutually beneficial settlements that qualify for the amnesty waivers.”
The tax amnesty program was introduced earlier this year through the passage of the 2023 Finance Act. The KRA hopes to collect more than KES 51 billion through the program by recovering unpaid principal tax debts that accrued prior to 2023.
Tax revenue accounts for about 80% of Kenya’s annual budget, so improving compliance and collections is crucial for the government as it works to reduce dependence on external borrowing.
Officials said public awareness campaigns are being ramped up through the end of the year to encourage taxpayers to take advantage of the amnesty while it is available. They stressed that this is a limited time opportunity.
“We urge taxpayers with debts to act quickly and apply before the December 31 deadline,” Rotich said. “This allows a fresh start going into 2023 for both the taxpayer and the KRA.”
Email your news TIPS to editor@thesharpdaily.com
