ACCA Kenya - Finance Bill, 2026 Analysis by RSM Kenya - 18 June 2026

Overview 

The Kenya Finance Bill, 2026 was released on 30^th April 2026. These are proposals at this stage and will only become effective once passed into an Act, which is expected on or before 30^th June 2026.

Highlights of the key proposed changes include:

• Introduction of a tax amnesty for liabilities relating to periods up to 31^st December 2025, with the amnesty expiring on 31^st December 2026
• Introduction of withholding tax on interchange fees, merchant service fees and payment to card companies following the recent ruling by the Supreme Court that such fees are not subject to withholding tax
• Change in the due date for filing income tax return for both individuals and companies from 6 months after the end of year of income to 4 months after the end of year of income. Nil returns will be due by end of the first month after the end of year of income
• Introduction of income tax on importation of second-hand clothing and similar items at an effective implied rate of 1.5% of the customs value
• Increase in the tax rate for monthly rental income from 7.5% to 10%
• Reversal of the calculation of timelines for objections and appeals from working days to calendar days
• Introduction of Commissioner’s power to recover input VAT claimed in respect of unsold supplies upon change of rate
• Proposed charge of VAT on digital and platform-based financial services
• Proposed increase in VAT-free threshold for accompanied baggage for returning passengers
• Exemption of non-residents from the requirement to obtain a PIN when opening an account with an investment bank

https://www.rsm.global/kenya/sites/default/files/media/RSMEA%20Newsletter%20-%20Overview%20of%20The%20Kenya%20Finance%20Bill%202026%20%28Gazetted%29.pdf 

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2 CPD units

ACCA members can use this learning to meet their CPD requirements provided it is relevant to their career. If the event contributes to general knowledge and skills, it should be recorded as non-verifiable CPD. If the learning can be applied in the workplace, it will contribute to verifiable CPD.

1 hour of learning = 1 unit of CPD.

Free

The webinar handout material will be available after the webinar.

This event is organised by ACCA Kenya.

If you have any queries regarding this event, please contact us at: