The Income Tax (Collective Investment Schemes Income Tax Exemption) Rules, 2026 (the Rules), published in the Kenya Gazette on 28 August 2026, establish the framework for collective investment schemes seeking and maintaining income tax exemption under Section 20 of the Income Tax Act (ITA).
The Rules set out the eligibility, application and certification requirements, record-keeping obligations for schemes with exempt investors, and grounds for revocation. They also revoke the previous registered unit trust and collective investment scheme rules while preserving the registration status of schemes registered under the former regime.
Read the full alert below.
New Rules on Income Tax Exemption for Collective Investment Schemes
As the Rules take effect, further clarification may be required on whether exemption certificates must be obtained annually, the treatment of existing exemption certificates under the former regime, and the effective date and tax consequences of a revocation. Clear administrative guidance on these matters would promote consistent implementation and reduce uncertainty for existing and newly established schemes.
Tax Insights
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Sandeep Main
Partner, Tax & Regulatory Services and Africa Head of Private Enterprise
KPMG One Africa
