The Finance Bill, 2023 (the Bill) was laid before Parliament on 4 May 2023. The Bill makes the most far-reaching changes that have been witnessed in tax legislation in the recent past. The tax measures introduced are aimed at expanding the taxes collected by the Government of Kenya, against the backdrop of fiscal pressure in the currently prevailing economic circumstances. The Bill proposes to make amendments to a raft of tax-related laws in Kenya, including 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 and the Excise Duty Act, 2015 amongst others.

5 May 23

Having been laid before Parliament, the Bill will over the next few weeks undergo a public participation process and Parliamentary debate. It is expected that the Bill will be enacted in law at some point in the course of June 2023, with the expected outcome being that it will be enacted into the Finance Act 2023 on or before the end of June 2023. It should be noted that there are provisions which are aimed to enter into force with effect from 1 July 2023 and therefore we expect that the timelines indicated above will be adhered to.

The Bill which we are currently reviewing will therefore be amended in the course of this process and consequently, these changes should be viewed in that light. We will keep you, our clients, updated on the process in the coming days and weeks.

Please note that this note summarises the changes set out in the Bill. We would caution that the summary does not fully analyse the changes set out in the Bill, neither does it fully describe the impact of the changes to any particular set of circumstances or group of persons. We would advise that specific tax advice is sought if you believe that any aspects highlighted herein apply to your circumstances.

Click here to download the snapshot of proposed tax changes under the Finance Bill, 2023.

Should you have any questions on this legal alert, please do not hesitate to contact Daniel Ngumy,  Kenneth Njuguna or James Karanja


1. Priscilla Githinji – Principal Associate
2. Salma Khamala – Principal Associate
3. Robert Mabwa – Associate
4. Faith Siteyia – Associate
5. Muna Abdullahi – Associate
6. Dhruv Shah – Associate
7. Abdullahi Ali – Associate
8. Eden Gatuiku – Trainee Lawyer
9. Onyango Owino – Trainee Lawyer
10. Caleb Weisiko – Trainee Lawyer