Finance Act 2026 in Kenya: What Changed and When

Last reviewed 2026-11-04 Applies to: Finance Act 2026 (effective 1 July 2026, 1 September 2026 and 1 January 2027)

Short answer: the Finance Act, 2026 was assented to on 23 June 2026 and gazetted on 26 June 2026. Most changes took effect on 1 July 2026. A few take effect on 1 September 2026 and 1 January 2027.

Key dates

Date	What applies
1 July 2026	Most amendments to the Income Tax Act, VAT Act, Excise Duty Act and Tax Procedures Act
1 September 2026	Importers must obtain and keep an export declaration or equivalent document from the country of export, per KRA's summary
1 January 2027	Shorter income tax return deadlines: individuals by the end of the fourth month after year-end and companies by the sixth month, per KPMG's summary

What stayed the same

Published summaries of the Act report no change to resident PAYE bands or the personal relief. See the PAYE guide.

VAT changes to watch

KRA reminds VAT-registered businesses that an invoice showing VAT should be issued only for a taxable supply, so confirm the VAT status of goods and services before charging it. Practitioner summaries also list changes affecting digital and platform-based financial services and outsourced labour services. See the VAT guide.

Filing system and amnesty

KRA has said it will replace Excel return forms with a web-based system. KRA also announced a six-month tax amnesty with penalty waivers; reports say taxpayers with unpaid principal tax must clear it through iTax by 31 December 2026. Read the conditions on KRA's notice before relying on it.

Official and source references

General information built on the official sources above. Confirm the current position with the issuing authority before acting.