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The Finance Act, 2026 (the Act) was assented into law by the President on 23 June 2026 and gazetted on 26 June 2026. The Act introduces significant changes to tax laws in Kenya, specifically the Income Tax Act (Chapter 470, Laws of Kenya), the Value Added Tax Act, 2013, the Tax Procedures Act, 2015, the Miscellaneous Fees and Levies Act, 2016, the Excise Duty Act, 2015, the Stamp Duty Act, the Affordable Housing Act, 2024, and the Road Maintenance Levy Fund Act (Chapter 427, Laws of Kenya).
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The changes are aimed at broadening the tax base by targeting both residents and non-residents through the creation of new tax points across various sectors. The Act also introduces a range of structural reforms to Kenya’s tax framework aimed at enhancing the Kenya Revenue Authority’s mandate on domestic revenue mobilisation, digitisation and strengthened anti-avoidance rules, among others. Additionally, the Act introduces targeted reliefs such as the tax amnesty program and other incentives aimed at stimulating investment in some sectors such as Public Private Partnerships.
All provisions of the Act came into force on 1 July 2026, save for the provisions introducing the new income tax return filing timelines for individuals and the amendment to the taxation of non-resident persons in the extractive industries, which take effect on 1 January 2027, and the amendments to the Tax Procedures Act relating to the import documentation, which take effect on 1 September 2026.
In May 2026, we issued a legal alert analysing the proposals contained in the Finance Bill, 2026 (the Bill). This update examines the amendments enacted under the Act and highlights the key implications for taxpayers and investors.
Click here to download and read our analysis of the tax changes introduced by the Finance Act, 2026.
Should you have any questions regarding this legal alert, please do not hesitate to contact Daniel Ngumy, Kenneth Njuguna, or Faith Siteyia.
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Contributors
1. Brian Waruru – Principal Associate
2. Cindy Mochere – Principal Associate
3. Dhruv Shah – Principal Associate
4. Muna Abdullahi – Principal Associate
5. Hope Wawire – Senior Consultant
6. Carl Amuka – Associate
7. Caleb Weisiko – Associate
8. Mercy Cheptoo – Associate
9. Lectisiah Gachara – Trainee Lawyer
10. Lucy Njogu -Trainee Lawyer
11. Stanley Omondi – Intern