What Has Changed?
The Finance Act, 2026 introduced an exemption from the requirement to have a Kenya Revenue Authority (KRA) PIN when a non-resident person opens an account with an investment bank.
The provision was retained from the Finance Bill, 2026.
Who Does This Apply To?
This provision applies to non-resident persons seeking to open an account with an investment bank in Kenya.
In simple terms, a non-resident investor can open an investment bank account without first being required to obtain a KRA PIN.
Why Is This Important?
Previously, tax registration requirements could create an additional procedural step for non-residents seeking to participate in Kenya’s investment and capital markets.
The exemption separates the process of opening an investment bank account from the broader requirement for tax registration.
This can make it easier for non-resident investors to access Kenya’s capital markets, particularly where opening the account does not itself create an immediate tax obligation.
A Simple Example
Imagine an investor who lives outside Kenya wants to invest in Kenyan securities through an investment bank.
Non-resident investor → Opens investment bank account → PIN requirement exempted
This reduces an additional procedural barrier at the account-opening stage.
Important Limitation
The exemption is specifically about the requirement for a PIN when opening an account with an investment bank.
It should not automatically be understood to mean that a non-resident is exempt from all Kenyan tax obligations or tax registration requirements in every circumstance.
Where other activities or transactions create tax obligations, the applicable tax rules would still need to be considered.
The Big Picture
The amendment is aimed at making it easier for non-resident investors to access Kenya’s investment and capital markets, while separating account-opening formalities from wider tax registration requirements.
Key Takeaway
A non-resident person may open an account with an investment bank without first obtaining a KRA PIN under Section 12 of the Tax Procedures Act.
This is a targeted account-opening exemption—not a blanket exemption from Kenyan tax obligations.
Source: Finance Act, 2026 — Section 12, Tax Procedures Act, Cap. 469B.
TAX HOME KENYA
Simplifying Your Tax Journey.
📱 Call/WhatsApp: +254 725 416 982
📧 taxhomekenya24@outlook.com