2026 Kenya Finance Act

Following the enactment of the Finance Act, 2026, we are pleased to share KPMG's analysis of the legislation.

The Act introduces a broad range of tax and regulatory changes aimed at widening the tax base, enhancing tax administration and supporting the Government's revenue objectives. The changes affect businesses across multiple sectors and cover areas including corporate income tax, withholding tax, transfer pricing, VAT, excise duty and tax administration. Several of the amendments also respond to recent judicial decisions and seek to address emerging developments in the digital economy and financial services sector.

The analysis below provides a practical overview of the key legislative changes, their effective dates and our insights on the potential implications for businesses operating in Kenya.