16/05/2026
Here's the full picture of the proposed Kenya Finance Bill 2026 based on my read-through of all 124 pages...share your thoughts
The bill amends six principal laws — the Income Tax Act, VAT Act, Excise Duty Act, Tax Procedures Act, and Miscellaneous Fees & Levies Act — with most provisions effective 1 July 2026 and a handful (on turnover tax thresholds, instalment tax, and dividend definitions) deferred to 1 January 2027.
A few things stand out as particularly significant:
The crypto reporting regime (new section 6C of the Tax Procedures Act) is arguably the most consequential new compliance obligation. Every crypto exchange serving Kenyan users must now file annual information returns naming all users to KRA — this is Kenya's version of the OECD's Crypto-Asset Reporting Framework (CARF) and signals a serious crackdown on undeclared digital asset income.
The reclassification of card payment fees as royalties will surprise many in the fintech and banking sector. It means that interchange and merchant service fees paid to international card schemes (Visa, Mastercard) will now attract withholding tax, increasing the cost of card payments.
The shortened tax return deadlines (from 6 months to 4 months post year-end) will put real pressure on businesses and their accountants, especially for those with December year-ends now required to file by end of April.
On the relief side, the clean energy VAT exemptions (electric bikes, buses, solar and lithium batteries, BEV stoves) are the most substantive consumer-friendly measures in the bill.
