SEP taxSignificant Economic Presence TaxKRAdigital tax KenyaFinance Act 2025e-commerce taxnon-resident taxationAI tax Kenyadigital marketplacescross-border tax
Significant Economic Presence Tax in Kenya 2026: How the 3% SEP Levy Replaced the Digital Service Tax and What It Means for Cross-Border Platforms
The Significant Economic Presence (SEP) Tax replaced Kenya's Digital Service Tax from 27 December 2024 and was widened by the Finance Act, 2025. At an effective rate of 3 per cent on gross Kenyan earnings, it now applies to nearly all non-resident digital, AI and data-monetisation services consumed in Kenya.
May 24, 2026
8 min read
27
KRA revenue 2026eTIMS KenyaKRA tax complianceSignificant Economic Presence taxDigital Service Tax KenyaKRA non-residentdiaspora KRA filingKenya tax compliance certificateKenya TreasuryKRA digital economy
KRA in 2025/26: The KSh2.97 Trillion Target, eTIMS Enforcement, and What It All Means for Diaspora Kenyans
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.
May 24, 2026
8 min read
13