Kenya introduced the Minimum Top-Up Tax (MTT) under section 12G of the Income Tax Act as part of the implementation of the global minimum tax framework. The MTT is intended to ensure that in-scope multinational enterprise (MNE) groups with operations in Kenya are subject to a minimum effective tax rate of 15% on their Kenyan profits.
The Income Tax (Minimum Top-Up Tax) Regulations, 2026 (the Regulations) were made by the Cabinet Secretary for the National Treasury on 12 August 2026 under section 130 of the Income Tax Act and published on 18 September 2026 as Legal Notice No. 189.
The Regulations provide the detailed framework for implementing Kenya’s MTT, including the computation of net income or loss, adjusted covered taxes, the substance-based income exclusion, safe harbours, notification filing obligations and the transitional rules.
Subject to the Act, the GloBEModel Rules and Agreed Administrative Guidance may be applied in interpreting the Regulations (Regulation 34(1)), and covered persons may make relevant GloBEelections not otherwise provided for in the Act or the Regulations (Regulation 34(2)).
The final Regulations follow the draft Regulations published on 24 October 2025. While the underlying framework has largely been retained, the final Regulations introduce important changes and clarifications to the operation of the MTT.
This alert summarizes the key provisions of the final Regulationsand the practical actions affected MNE groups should now take.
Kindly download the analysis below to read the full report.
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Kenya's Income Tax (Minimum Top-Up Tax) Regulations, 2026
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Key contacts
Sandeep Main
Partner, Tax & Regulatory Services and Africa Head of Private Enterprise
KPMG One Africa
