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The Cabinet Secretary for the National Treasury issued the Income Tax (Significant Economic Presence Tax) Regulations, 2026 ("SEPT Regulations") via Legal Notice No. 188 of 2026 under Section 12E(6) of the Income Tax Act (ITA). Replacing the 2020 Digital Service Tax (DST) Regulations, the SEPT Regulations take effect on the date of publication in the Kenya Gazette.

The Cabinet Secretary for the National Treasury has issued the Income Tax (Minimum Top-Up Tax) Regulations, 2026 (Legal Notice No. 189), effective 18 September 2026. The Regulations operationalise Section 12G of the Income Tax Act, aligning Kenya’s domestic tax framework with the OECD/G20 Pillar Two Global Anti-Base Erosion (GloBE) Model Rules through a Qualified Domestic Minimum Top-up Tax (QDMTT).

The Cabinet Secretary for the National Treasury has gazetted the Income Tax (Transfer Pricing) Rules, 2026 via Legal Notice No. 186 of 2026, revoking the previous 2006 framework. The updated rules align Kenya’s transfer pricing regime closely with OECD standards, introducing stringent disclosure requirements, expanded transaction scopes, and specific benchmark provisions for commodity pricing.

The Drifield Kenya Limited v Commissioner of Customs & Border Control case highlights how customs tariff classification can have major tax and compliance implications beyond routine import procedures.

A recent Tax Appeals Tribunal ruling in Coca-Cola Beverages Limited v Commissioner of Domestic Taxes clarifies that the six-month statutory window for claiming input VAT cannot be extended through an amended return. We examine the critical compliance implications for businesses relying on iTax amendments to correct historical omissions.

The Kenya Tax Appeals Tribunal (TAT), in Chairmania Events Ltd v Commissioner for Investigation and Enforcement, reaffirmed that the Kenya Revenue Authority (KRA) cannot disallow a taxpayer’s input VAT claim solely on account of a supplier's alleged non-compliance or "missing trader" status.

To secure and retain exemption, non-profit organizations must satisfy three strict statutory tests organizational, operational, and public benefit while adhering to surplus fund limitations and governance standards. Boards and finance leaders must proactively evaluate operational alignment and documentation to withstand KRA regulatory reviews.

In Aquavita Kenya Limited v Commissioner of Domestic Taxes, the Tax Appeals Tribunal affirmed that economic substance overrides legal form when classifying financial instruments for tax purposes. The ruling clarifies the application of Withholding Tax on deemed interest, restricts the Revenue Authority from imposing inconsistent tax treatments on a single transaction, and establishes procedural limits on introducing new issues during tax objections.

With Central Bank of Kenya climate risk frameworks moving toward expected mandatory application in late 2026, financial institutions across Kenya, Uganda, Tanzania, and Rwanda face heightened supervisory and investor scrutiny. This article examines why building a layered governance and risk architecture—rather than relying on top-down compliance checklists—is critical to creating defensible, bankable green finance strategies across regional markets.

The High Court has reinstated a KES 29.2 million KRA tax assessment against Jakoline Enterprises Limited. The ruling establishes a critical legal precedent for corporate compliance: submitting raw financial records during an audit is insufficient to discharge the statutory burden of proof without an explicit reconciliation of variances between Corporation Tax and VAT returns.

This publication outlines how outsourcing payroll in Kenya helps organizations maintain statutory compliance across PAYE, SHIF, and AHL, reduce operational risk, and align payroll administration with strategic business goals.

The Finance Act, 2026 amends the Fourth Schedule to the Income Tax Act, expanding mortgage interest relief to borrowers obtaining qualifying housing loans from licensed Microfinance Institutions (MFIs). Previously limited to specified traditional financial institutions, this update allows MFIs to offer tax-efficient housing finance products, increasing competitive lending and widening access to homeownership across Kenya.

An analysis of the Court of Appeal judgment in Sybrin Kenya Ltd v Commissioner of Domestic Taxes [2026] KECA 1293 (KLR), examining the VAT classification of cross-border software support services under Section 2 of the Kenya VAT Act following a KES 40.7 million assessment on subcontracted local services.

Under the Finance Act, 2026, taxpayers can resolve historical tax liabilities accrued on or before 31 December 2025 with a 100% waiver on penalties, interest, and fines. Running from 1 July 2026 to 31 December 2026, this five-month window provides an opportunity to eliminate accumulated penalties, leverage flexible iTax payment plans, and reduce future regulatory enforcement risks. Review eligibility criteria and regularize your tax affairs before the relief window closes.

An overview of East Africa Seed Company Limited v Commissioner [2026] KEHC 8641 (KLR). Following a KRA audit confirming a KShs 221.3M VAT assessment and a Tax Appeals Tribunal dismissal, the taxpayer has appealed to the High Court on points of law.

Following the formal parliamentary consideration and enactment of the Finance Act, 2026, Kenya’s corporate tax landscape has experienced notable legislative updates. The Act introduces key amendments to tax legislation aimed at improving administration, expanding the tax base, and driving revenue collection.