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
Capital Gains TaxCGT Kenya 2026Finance Bill 2026non-resident taxshare sale taxcross-border equityindirect transferdiaspora investmentKRAKenya tax lawM&A taxdeal structuring
Capital Gains Tax on Share Sales by Non-Residents in Kenya 2026: How the Finance Bill Reshapes Cross-Border Equity Deals
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.
May 24, 2026
9 min read
18