CDH Kenya / Kieti Law LLP

Analysis of the Kenya Finance Bill 2026

Kenya's Finance Bill, 2026 proposes amendments to several tax laws including the Income Tax Act, VAT Act, and Excise Duty Act, effective 1 July 2026 with some changes taking effect 1 January 2027. Key changes include clarifying the definition of immovable property, expanding management or professional fees to include interchange and merchant service fees, and broadening the definition of royalty to cover digital platforms and payment systems. These amendments aim to address judicial decisions and may increase tax burdens on financial institutions.