What is a KRA Waiver Letter?
A KRA waiver letter is a formal request by a taxpayer to the Kenya Revenue Authority seeking relief from penalties and/or interest charged on tax obligations due to valid reasons.
Purpose of a Waiver Request
The main purpose is to reduce or remove extra charges so that taxpayers only pay the principal tax owed. This promotes compliance while acknowledging genuine challenges faced by taxpayers.
Legal and Regulatory Basis
The waiver of penalties and interest is governed under the Tax Procedures Act, 2015 and related KRA guidelines. Waivers are not automatic — they must be requested formally and evaluated on merit.
Common Grounds for Requesting a Waiver
Penalties for Late Filing
Applied when returns are not filed by the due date. A waiver may be granted if the delay was caused by system downtime or other valid reasons.
Penalties for Late Payment
Arise when taxes are paid after the deadline. Waivers can be considered if delays were due to cash flow challenges or unavoidable circumstances.
Interest on Outstanding Taxes
KRA charges interest on overdue taxes. A taxpayer can request relief if they can demonstrate genuine hardship, systemic issues, or prior engagements with KRA.
Other Justifiable Circumstances
These include medical emergencies, natural disasters, or administrative errors beyond the taxpayer’s control.
Pre-Requisites Before Writing a Waiver Letter
Ensuring Returns are Filed
All pending returns must be filed first, since KRA does not consider waiver requests for taxpayers with unfiled returns.
Clearing Outstanding Principal Tax
The taxpayer should pay the principal tax due because waivers only apply to penalties and interest, not the actual tax.
Gathering Supporting Evidence
Collect evidence such as payment receipts, medical reports, system downtime notices, or correspondences that prove the circumstances.
Structure of a KRA Waiver Letter
Header and Taxpayer Details
Include taxpayer name, PIN, address, and date.
Subject Line
Clearly state: “Request for Waiver of Penalties and Interest”.
Introduction and Reference to Tax Obligation
Briefly introduce yourself and reference the specific tax period or return in question.
Explanation of Circumstances
Provide a concise but detailed explanation of why penalties/interest arose.
Request for Waiver (Polite Appeal)
Formally request KRA to consider granting a waiver.
Supporting Documents Mention
Indicate the evidence attached for review.
Closing and Contact Information
End with appreciation and provide contact details for follow-up.
Writing Tips for an Effective Waiver Letter
- Be Clear and Concise: Avoid long or unclear explanations.
- Maintain a Respectful Tone: Use professional and polite language.
- Provide Evidence: Attach proof to strengthen your case.
- Follow KRA Guidelines: Align your letter with the requirements set out on iTax.
Sample Waiver Letter Templates
Waiver for Late Filing Penalty
Suitable when returns were filed late due to system failure or unavoidable delays.
Waiver for Late Payment Penalty
Applicable when a taxpayer had genuine financial challenges but later paid the principal tax.
Waiver for Interest Charges
Useful when requesting relief from accrued interest, especially in prolonged disputes or hardship cases.
Submission Process
Uploading on iTax Portal
Log in → Debt and Enforcement → Waiver Application → Fill form and attach letter and documents.
Submitting at KRA Offices
Alternatively, deliver a signed physical copy at the nearest KRA office if online submission is not possible.
Tracking the Waiver Request
Monitor status through iTax or by following up with your assigned KRA officer.
After Submission
Response Timelines
KRA typically responds within 30–90 days, though timelines may vary.
Possible Outcomes
- Approved fully – all penalties/interest waived.
- Partially approved – only a portion waived.
- Rejected – waiver not granted.
Next Steps if Waiver is Rejected
You may re-apply with stronger evidence or appeal through the Tax Appeals Tribunal.
Best Practices & Common Mistakes to Avoid
Best Practices
- Keep copies of all submissions.
- File and pay taxes on time to avoid future penalties.
- Seek professional advice where necessary.
Mistakes to Avoid
- Submitting waiver requests with unpaid principal tax.
- Writing vague explanations without evidence.
- Using informal or demanding language.
- Conclusion
A KRA waiver letter is an important tool for taxpayers seeking relief from penalties and interest. By following the right structure, providing evidence, and maintaining compliance, taxpayers improve their chances of approval. Proper preparation, respectful communication, and timely action are key to success.
