Tax, VAT, customs and trade alerts

We provide a wealth of publications by PwC Kenya providing informed commentary on current developments in the tax arena.

Through analysis and comment on new law and judicial decisions of interest, they assist business executives to identify developments and trends in tax law and revenue practice that might impact their business.

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In this alert:

Finance Bill 2026: Key tax proposals and implications

The Finance Bill 2026 proposes significant changes to Kenya’s tax framework, aimed at broadening the tax base, accelerating compliance, and enhancing revenue collection. 

Key measures include expanding the scope of management or professional fees, royalties, digital payment-related services and capital gains on indirect disposals. The Bill also seeks to broaden the Commissioner’s assessment and enforcement powers, and introduces a tax amnesty for interest and penalties on historical tax liabilities, provided principal tax is settled by 31 December 2026. 

Other notable proposals include shifting certain supplies from zero-rated to exempt status, narrowing the scope of exempt financial services, and realigning betting and gaming taxation across income tax, excise duty and withholding tax. 

While these measures may strengthen tax administration and revenue mobilisation, they could also increase compliance obligations, tax costs, and operational complexity for businesses and investors.

Read our detailed Tax Alert for a comprehensive analysis of the proposed changes and their implications.