Property & Digital Payments: Two Important Clarifications You Should Know

Issue No. 003 | July 31, 2026

Tax Home Kenya Limited

The Finance Act, 2026 introduces two important changes aimed at making Kenya's tax laws clearer and easier to apply.

1. A Clearer Definition of Immovable Property

The Act clarifies that owning land or holding mining or petroleum rights is enough for something to qualify as immovable property for tax purposes.

Previously, the wording created room for different interpretations. This amendment removes that uncertainty and is expected to reduce disputes when applying tax laws such as Capital Gains Tax.

          What this means for you: If your business deals with land, property, mining, or petroleum rights, this change provides greater certainty on how these assets are treated under the law.
        

2. Changes Affecting Digital Card Payments

The Act also expands the definition of Management or Professional Fees to include certain fees paid for using international card payment networks such as Visa and Mastercard.

As a result, some payments made by Kenyan businesses, banks, or payment service providers to foreign payment networks may now be subject to Withholding Tax.

          What this means for you: This change is mainly relevant to banks, payment service providers, fintech companies, and businesses that process electronic card payments. It does not introduce a tax on people simply using their debit or credit cards.
        

Tax Home Kenya Insight

Not every amendment in the Finance Act introduces a new tax. Some simply clarify existing laws, making them easier to interpret and helping reduce future disputes between taxpayers and the Kenya Revenue Authority (KRA).

Need help understanding how the Finance Act, 2026 affects your business?

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