Before the amendment of Section 89 of the Tax Procedures Act introduced by the Finance Act, 2025 which took effect on 1^st July 2025, the Kenya Revenue Authority (KRA), through the Commissioner of Domestic Taxes, exercised direct administrative discretion to waive penalties and interest once a taxpayer had settled the principal tax. However, the enactment of Section 89(5A) of the Tax Procedures Act by the Finance Act, 2025 fundamentally altered this position by shifting the waiver regime from administrative discretion to a tightly defined statutory and policy‑driven framework.