The 2024 Gen Z protests forced Kenya's government to withdraw an entire Finance Bill and dissolve the Cabinet. Two years on, the Finance Bill 2026 has tabled many of the same measures in different clothing. This article maps the new bill against the 2024 demands, the civic response and the constitutional process to budget enactment.
The Finance Bill 2026 increases the residential rental income tax rate from 7.5% to 10% of gross rent. The Bill also introduces a 30% withholding tax on rent paid to non-resident persons. Diaspora landlords face a meaningfully different tax bill in 2026/27 and should review their property holding structures.
The Finance Bill 2026 widens the scope of capital gains tax to include the alienation of shares by non-residents where the underlying value derives from Kenya, or where the transaction results in a change of group membership of a Kenyan-resident company. The change has significant implications for diaspora investors and cross-border deal structures.
The National Treasury wants to apply 16% Value Added Tax to fees charged by M-Pesa, Airtel Money, Pesapal, Kenswitch and dozens of other payment platforms. Although the levy targets platform operators, industry watchers expect higher costs to filter down to consumers, including diaspora Kenyans who send money home.
By March 2026, KRA had collected KSh2.038 trillion at a 96.1% performance rate against target and a 11.4% year-on-year growth. The full-year target sits at KSh2.97 trillion. The eTIMS rollout, the Significant Economic Presence tax, and tougher non-resident rules reshape compliance for diaspora Kenyans.
Kenya's Finance Bill 2026 was tabled on 5 May 2026 and is now under public participation. For diaspora Kenyans who own property, run businesses, hold investments or plan to return, the proposals reshape how income is taxed, how employees are compensated, and how compliance is enforced. This guide breaks down the changes that matter.
Kenya's tax system, administered by the Kenya Revenue Authority, generates over 90 percent of government revenue through a complex framework of income tax, VAT, excise duty, customs duty, and various ...
Kenya's tax system is one of the most comprehensive in East Africa, comprising multiple tax types that affect individuals, businesses, and transactions at various levels. Understanding these taxes is ...
Comprehensive guide to Kenya's tax system for diaspora taxpayers. Covers residency rules, income tax, withholding tax, DTAs, filing requirements, and tax planning strategies.
Cookies on this site
We use cookies to keep this site running and, with your consent, to understand how visitors use it. You can change your choice anytime in our Cookie Notice.