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The Finance Act, 2025 (the Act) was assented into law by the President on 27 June 2025 and thereafter published in the Kenya Gazette. The Act sets out a wide range of changes to Kenya’s tax laws, including the Income Tax Act (Chapter 470), the Value Added Tax Act (Chapter 476), the Tax Procedures Act (Chapter 469B), the Miscellaneous Fees and Levies Act (Chapter 469C), and the Excise Duty Act (Chapter 472).
9 July 25
Other Insights:
All provisions in the Act came into effect on 1 July 2025, except for the new provisions introducing Advance Pricing Agreements into the transfer pricing regime, and collection of import declaration fee under the Miscellaneous Fees and Levies Act, which will take effect on 1 January 2026.
We had previously provided an analysis of the Finance Bill 2025. We provide an update by way of this detailed analysis of the key changes in the Act and their potential impact on taxpayers and businesses operating in Kenya.
Click here to download the analysis of the tax changes introduced by the Finance Act, 2025.
Clich here to download and read a snapshot of the tax changes introduced by the Finance Act, 2025.
Should you have any questions on this legal alert, please do not hesitate to contact Daniel Ngumy, Kenneth Njuguna, James Karanja or Dennis Chiruba.
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Contributors
1. Priscilla Githinji – Principal Associate
2. Faith Siteyia – Principal Associate
3. Dhruv Shah – Principal Associate
4. Muna Abdullahi – Principal Associate
5. John Kiragu – Associate
6. Bettina Okinyi – Associate
7. Caleb Weisiko – Associate
8. Cindy Mukami -Trainee Lawyer
9. Andrew Simiyu- Trainee Lawyer
10. Maureen Isika -Trainee Lawyer
11. Dedan Muimi – Intern
12. Lectisiah Gachara – Intern
13. Vincent Mbaluka – Intern