077
October 16, 2026
Reduced Allocation to the Road Annuity Fund
The allocation to the Road Annuity Fund from the Road Maintenance Levy was reduced from KSh 3 to KSh 1.50 per litre of petroleum sold.
Read Issue 077 →How to use this series: Start with any issue relevant to your business or tax position. Each article explains the change in plain language, identifies who is affected and highlights practical compliance considerations. This series is for education and should be read together with the enacted law, current KRA guidance and professional advice.
Published issues: 77Latest published: Issue 077Order: 077 → 001
076
October 16, 2026
Stamp Duty Relief on Property Transfers to REITs
Stamp duty relief was extended to instruments transferring a beneficial interest in property to a Real Estate Investment Trust, subject to the legal requirements.
Read Issue 076 →075
October 16, 2026
Changes to IDF and RDL Exemptions
The Finance Act narrows certain aircraft-related exemptions, does not adopt proposed mobile-phone exemptions and provides targeted relief for qualifying LPG infrastructure investments.
Read Issue 075 →074
October 16, 2026
Import-Related Levies: Strengthening Customs Enforcement
The Finance Act broadens the application of EACCMA provisions to fees and levies under Part III of the Miscellaneous Fees and Levies Act.
Read Issue 074 →073
October 16, 2026
Import Declaration Fee (IDF): Proposed Changes Dropped
Proposed changes to the allocation of Import Declaration Fee collections were not retained in the final Finance Act, leaving the existing framework unchanged.
Read Issue 073 →072
October 16, 2026
Extension of Excise Duty Exemption
The National Intelligence Service is added to the list of institutions eligible for qualifying official-use goods under the Excise Duty exemption.
Read Issue 072 →071
October 16, 2026
Formal Recognition of Virtual Assets
The Finance Act aligns Excise Duty Act terminology with the Virtual Asset Service Providers Act, 2025 and retains the 10% excise duty on fees charged on virtual asset transactions.
Read Issue 071 →070
October 13, 2026
Excise Duty on Coal: The Proposed Tax Was Dropped
The proposed 5% Excise Duty on coal in the Finance Bill, 2026 was not retained in the final Finance Act.
Read Issue 070 →069
October 13, 2026
Four New Excise Duty Introductions
The Finance Act introduced Excise Duty on specified imported wood and timber products, plastic sheeting, sanitary fittings and pre-personal chip modules.
Read Issue 069 →068
October 13, 2026
Increase in Excise Duty on Imported Sugar
The Finance Act increased the Excise Duty rate on imported sugar from KES 7.50 to KES 40 per kilogram, subject to specified exclusions.
Read Issue 068 →067
October 13, 2026
Excise Duty on Goods from EAC Partner States
The Finance Act largely retained excise duty relief for qualifying goods originating from EAC Partner States, with a targeted change for float glass under tariff heading 7005.
Read Issue 067 →066
October 13, 2026
Excise Duty on Ceramic Products
The Finance Act clarifies a hybrid Excise Duty rate for specified imported ceramic products under tariff headings 6907 and 6910.
Read Issue 066 →065
October 13, 2026
Excise Duty on Imported Plastic Articles
The Finance Act clarified the Excise Duty treatment of imported plastic articles under tariff headings 3923.30.00 and 3923.90.90.
Read Issue 065 →064
October 13, 2026
Increase in Excise Duty on Imported Sugar
The Finance Act increased excise duty on imported sugar from KES 7.50 to KES 40 per kilogram.
Read Issue 064 →063
October 9, 2026
Reduced Excise Duty on Ethanol and Increased Excise Duty on Tobacco Products
The Finance Act reduces ENA Excise Duty for licensed spirituous-beverage manufacturers and increases Excise Duty on specified tobacco products.
Read Issue 063 →062
October 7, 2026
Excise Duty Removed from Bottled and Packaged Drinking Water
Bottled and similarly packaged drinking water is no longer subject to Excise Duty under the amended provision.
Read Issue 062 →061
October 7, 2026
Excise Duty: Sweetened vs Unsweetened Juices
The Finance Act introduces different Excise Duty rates for sweetened and unsweetened qualifying fruit and vegetable juices.
Read Issue 061 →060
October 7, 2026
Clarification on Excise Duty on Imported Gas Cylinders
The Finance Act clarifies that imported gas cylinders chargeable to Excise Duty are those under tariff code 7311.00.10.
Read Issue 060 →059
October 7, 2026
Excise Duty Refunds on Inputs Used to Manufacture Exempt Goods
What Has Changed? The Finance Act, 2026 provided for a refund of excise duty paid on inputs used by licensed or registered manufacturers to produce excisable goods exempt under Paragraph 12 of Part A of the Sec
Read Issue 059 →058
October 7, 2026
Excise Duty on Antique and Classic Vehicles
What Has Changed? The Finance Act, 2026 introduced Excise Duty at 50% of the excisable value on qualifying antique and classic vehicles. Which Vehicles Qualify? The measure applies to vehicles: Whose year of fi
Read Issue 058 →057
October 7, 2026
Zero-Rating of Electric Bicycles, Solar and Lithium-Ion Batteries
What Has Changed? The Finance Act, 2026 amended Paragraphs 31 and 32 of the Second Schedule to the VAT Act by specifying the tariff headings for electric bicycles and solar and lithium-ion batteries eligible fo
Read Issue 057 →056
October 5, 2026
VAT Changes: Tourism, PPP and LPG Infrastructure Services
VAT relief was withdrawn for specified tourism construction services while targeted exemptions were introduced for qualifying PPP and LPG infrastructure services.
Read Issue 056 →055
October 5, 2026
VAT Exemption for Tour Operators: New Clarity
The Finance Act clarifies the VAT exemption for licensed tour operators and distinguishes exempt tour services from taxable in-house supplies.
Read Issue 055 →054
October 5, 2026
VAT on Digital Payment Processing Services
Specified digital payment processing, settlement, merchant acquiring, gateway and aggregation services are excluded from the VAT exemption.
Read Issue 054 →053
October 2, 2026
Returning to Kenya? VAT-Free Baggage Allowance Increased
The VAT-free accompanied baggage threshold for qualifying returning residents and passengers increased from USD 300 to USD 2,000.
Read Issue 053 →052
October 2, 2026
VAT Exemptions: Three Important Changes
VAT exemption amendments affect official aid-funded projects, aircraft parts and manufacturing investment capital goods.
Read Issue 052 →051
October 2, 2026
Zero-Rated to Exempt: Pharmaceutical Inputs and BEV Stoves
Pharmaceutical manufacturing inputs and BEV stoves moved from zero-rated VAT to exempt status, affecting input VAT recovery.
Read Issue 051 →050
October 2, 2026
VAT Exemptions: New Items Moved Out of the Taxable Scope
New VAT exemptions cover dialysis equipment, infrastructure projects, large investments, LPG infrastructure and specified financial transactions.
Read Issue 050 →049
October 2, 2026
VAT: Four Items Moved from Exempt to Standard-Rated
Four categories of goods are no longer covered by previous VAT exemptions, with possible input VAT recovery for eligible taxpayers.
Read Issue 049 →048
October 2, 2026
VAT Invoices: VAT Can Only Be Charged on Taxable Supplies
Section 42(2) clarifies that an invoice showing an amount purporting to be tax may only be issued for a taxable supply.
Read Issue 048 →047
October 2, 2026
VAT Bad Debt Refunds: Period Changed from 2 to 3 Years
Section 31 changes the minimum qualifying period for VAT bad debt refunds from two years to three years.
Read Issue 047 →046
October 2, 2026
VAT Input Tax Adjustment When Taxable Supplies Become Exempt
Section 17A requires an input tax adjustment where supplies on which input VAT was claimed become exempt while unsold.
Read Issue 046 →045
October 2, 2026
VAT Input Tax Recovery on Certain Exempt Supplies
Section 17 allows recovery of directly attributable input VAT on specified exempt supplies made to government security agencies, subject to conditions.
Read Issue 045 →044
October 2, 2026
VAT and Hire Purchase Financial Charges
Section 13(6)(a) makes the VAT exclusion for hire purchase financial charges conditional on licensing and registration requirements.
Read Issue 044 →043
October 2, 2026
VAT on Labour Outsourcing and Employee Placement Services
Section 13 treats qualifying employee-related costs as disbursements, so VAT applies to the supplier’s service fee or margin.
Read Issue 043 →042
October 2, 2026
Electronic Tax System Errors: Penalties and Interest May Be Waived
Sections 89(5A), 89(5B) and 112(2) provide a waiver framework for qualifying electronic-system errors and support pre-populated returns.
Read Issue 042 →041
October 2, 2026
Penalties for Failure to Comply with Electronic Tax System Requirements
Section 86 revises penalties for electronic tax system non-compliance and requires the Commissioner to consider reasonableness before imposing a penalty.
Read Issue 041 →040
October 2, 2026
Pre-Populated Tax Returns: KRA to Provide Returns Using Available Taxpayer Data
Section 75 formally introduces pre-populated tax returns generated from available taxpayer data, with notification and taxpayer review safeguards.
Read Issue 040 →039
October 2, 2026
Tax Amnesty Extended, Withholding Relief Retained and Recovery Powers Expanded
Sections 37E, 39A and 39B extend the tax amnesty, retain withholding-agent relief and expand recovery powers for certain unpaid statutory amounts.
Read Issue 039 →038
October 2, 2026
KRA Can Originate a Tax Assessment Using Available Information
Section 29A allows the Commissioner to originate an assessment using available information, while preserving notice, clarification and objection safeguards.
Read Issue 038 →037
September 21, 2026
Importers: Proof of Export Declaration Now Required
Section 23B introduces documentation requirements for imported goods, including export declarations or equivalent customs certificates retained for at least five years.
Read Issue 037 →036
September 18, 2026
Commissioner’s Power to Address Tax Avoidance Schemes
Section 18A addresses tax avoidance arrangements while requiring written reasons within 30 days and allowing private rulings for complex transactions.
Read Issue 036 →035
October 2, 2026
Non-Residents: No PIN Required to Open an Investment Bank Account
Section 12 exempts non-residents from the KRA PIN requirement when opening an account with an investment bank, without removing other possible tax obligations.
Read Issue 035 →034
September 17, 2026
Reinstating Your KRA PIN After Deregistration
Section 10 provides a reinstatement process, continuity of the previous PIN, and a 90-day written notification timeline.
Read Issue 034 →033
September 17, 2026
Automatic Exchange of Information on Virtual Asset Transactions
Section 6D creates a framework for international exchange of virtual-asset information, with data-protection safeguards.
Read Issue 033 →032
September 17, 2026
Virtual Asset Service Providers to File Information Returns
Section 6C introduces annual information returns, nil returns, data-protection safeguards, and penalties for VASPs.
Read Issue 032 →031
September 17, 2026
Tax Procedures Act: Certificate of Origin, Virtual Assets & VASPs
The Finance Act 2026 updates TPA definitions for certificates of origin, virtual assets, and virtual asset service providers.
Read Issue 031 →030
September 17, 2026
Employment Income of Kenya Airways Employees: What Has Changed?
A new rule applies to qualifying non-resident employees of a Government-designated national carrier performing duties outside Kenya.
Read Issue 030 →029
September 17, 2026
Pension Benefits: What Happens When a Member Dies?
Pension benefits paid upon the death of a member are exempt from tax, subject to the specific statutory exemption.
Read Issue 029 →028
September 17, 2026
Gratuity & Tax: What Has Changed?
Understand the three-year rule, 31% limit, pension-scheme distinction, and employer checks for gratuity tax treatment.
Read Issue 028 →027
September 17, 2026
Non-Resident Contractors: Corporate Tax Drops from 37.5% to 30%
The Finance Act 2026 reduces corporate tax for qualifying non-resident extractive-sector contractors and introduces tax on repatriated income.
Read Issue 027 →026
September 16, 2026
Microfinance Institutions & Capital Gains Tax: What Changed?
The Finance Act 2026 exempts qualifying microfinance interest from WHT and expands CGT reach over certain indirect non-resident share disposals.
Read Issue 026 →025
September 16, 2026
Scrap Metal, Winnings & Dividends: What Changed?
The Finance Act 2026 changes WHT on scrap metal payments, winnings, and dividends paid to citizens of EAC Partner States.
Read Issue 025 →024
September 16, 2026
100% First-Year Investment Allowance for Petroleum or Gas Storage
Qualifying petroleum or gas storage investments exceeding KES 10 billion may claim a 100% investment allowance in the first year of use.
Read Issue 024 →023
September 16, 2026
Two Important Tax Exemptions: Death Benefits & Property Transfers to REITs
The Finance Act 2026 retains exemptions for qualifying death benefits and capital gains on qualifying property transfers to registered REITs.
Read Issue 023 →022
September 16, 2026
Your Tax Return Deadline Is Changing from 2027!
Learn the new Section 52B annual return deadlines: 30 April for individuals and 30 June for companies with 31 December year-ends.
Read Issue 022 →021
September 16, 2026
KRA Asks You to File a Return? Here’s What Section 52 Means
Understand what a KRA Section 52 notice means, what it does not mean, and the fixed deadline that will apply from 1 January 2027.
Read Issue 021 →020
September 16, 2026
Tax Trivia: WHT on Scrap Metal
From 1 July 2026, scrap metal payments are subject to 1.5% withholding tax on the gross amount paid.
Read Issue 020 →019
September 16, 2026
National Carrier & Withholding Tax: What Changed?
The Finance Act 2026 narrows the national carrier’s WHT exemption while protecting specified digital platforms and payment infrastructure.
Read Issue 019 →018
September 16, 2026
Section 23 Repealed – But Tax Avoidance Is Not Gone!
The Finance Act 2026 centralises anti-avoidance enforcement under Section 18A of the Tax Procedures Act while preserving legitimate tax planning.
Read Issue 018 →017
September 16, 2026
Section 19 – Insurance Companies: Statutory Fund Terminology
The Finance Act 2026 aligns the Income Tax Act with the Insurance Act by replacing “life insurance fund” with “statutory fund.”
Read Issue 017 →016
September 16, 2026
Country-by-Country (CbC) Reporting
A practical family-and-schools analogy explaining CbC Reporting, key definitions, and what the Finance Act 2026 clarified for multinational groups.
Read Issue 016 →015
September 16, 2026
Section 18D – Country-by-Country (CbC) Reporting
A simple guide to Country-by-Country Reporting, what information it contains, and the technical clarifications retained in the Finance Act 2026.
Read Issue 015 →014
September 16, 2026
Interest Deductibility for Lending and Leasing Businesses
The Finance Act 2026 clarifies that the existing interest-deduction provision covers lending businesses, leasing businesses, or both.
Read Issue 014 →013
September 17, 2026
Tax Losses: Special Relief for Qualifying Large Investments
Qualifying investors with at least KES 10 billion invested before 1 July 2025 may preserve pre-date tax losses until fully utilised.
Read Issue 013 →012
September 16, 2026
Bad Debt Relief for Money Lenders, Banks & Financial Institutions
The Finance Act 2026 clarifies deductions for irrecoverable loan principal, accrued interest, and other amounts relating to qualifying bad debts.
Read Issue 012 →011
September 16, 2026
Finance Act 2026 Rationalises the Instalment Tax Provisions
The Finance Act 2026 removes obsolete Minimum Tax references and clarifies the instalment tax exclusion for employees whose only taxable income is employment income.
Read Issue 011 →010
September 17, 2026
Income Received by Trustees – Simpler Taxation, Less Double Tax
The Finance Act 2026 clarifies how trust income is taxed and helps prevent the same income being taxed again when distributed to beneficiaries.
Read Issue 010 →009
September 15, 2026
Tax Rules for Scrap Metal Transactions
The Finance Act 2026 introduces new tax rules and 1.5% withholding tax on scrap metal purchases in Kenya.
Read Issue 009 →008
September 15, 2026
Faster Tax Payment Deadlines for Non-Resident Ship Owners & Charterers
The Finance Act 2026 changes how tax on non-resident shipping income is collected and sets an earlier payment deadline.
Read Issue 008 →007
September 15, 2026
Tax Amnesty Is Back: Clear Your Tax Arrears Before 31 December 2026
The Finance Act 2026 reintroduces a Tax Amnesty Programme for eligible tax liabilities up to 31 December 2025.
Read Issue 007 →006
July 31, 2026
New Withholding Tax Framework for Non-Resident Rental Income
The Finance Act 2026 introduces a simplified final withholding tax framework and monthly compliance obligations for non-resident landlords earning rental income from property in Kenya.
Read Issue 006 →005
July 31, 2026
Withdrawals & Winnings: What Has Changed?
The Finance Act 2026 reintroduces taxation of winnings from betting, lotteries, gaming and prize competitions. Learn about the new rules.
Read Issue 005 →004
July 31, 2026
Expanding the Definition of Royalties
The Finance Act 2026 expands the definition of royalties to include digital payment network fees. See how this affects your business.
Read Issue 004 →003
July 31, 2026
Property & Digital Payments: Two Important Clarifications You Should Know
The Finance Act 2026 clarifies the treatment of immovable property and expands management or professional fees to cover certain international card payment network fees.
Read Issue 003 →002
July 31, 2026
Finance Act 2026 Explained: Key Highlights
Discover the practical amendments in the Finance Act 2026, including bad debt deductions and investment incentives.
Read Issue 002 →001
July 15, 2026
What Is the Finance Act, 2026?
An introduction to the enacted Finance Act 2026, its commencement date, affected tax laws, and notable changes from the Finance Bill.
Read Issue 001 →Tax Home Kenya Limited — Simplifying Your Tax Journey. Tax laws, rates, deadlines and administrative guidance may change. Confirm the current position before filing or making a payment.