Kenya: Tax measures enacted in Finance Act, 2022

Changes that aim to raise additional revenues and to align the tax legislation to the government development priorities

Changes that aim to raise additional revenues

The Finance Act, 2022 was signed into law by the president on 21 June 2022, published on 23 June 2022, and gazetted on 8 July 2022.

The Finance Act, 2022 introduced a number of changes that aim to raise additional revenues and to align the tax legislation to the government development priorities.

Tax measures in the Finance Act, 2022:

  • Introduce a lower tax rate of 15% in respect of a company operating a carbon market exchange or emission trading system that will apply for the first 10 years
  • Introduce a number of changes designed for equity in the application of tax laws for entities in similar business by excluding from thin capitalization rules certain entities and institutions
  • Raise the capital gains tax to 15% (from 5%)
  • Amend the annual inflation adjustment provision

Read a July 2022 report [PDF 3.5 MB] prepared by the KPMG member firm in Kenya


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