The proposed Finance Bill, 2026 represents one of the most significant transformations in Kenya’s tax policy and compliance environment in recent years. The Bill introduces far-reaching reforms aimed at expanding the tax base, accelerating digitization, strengthening enforcement mechanisms and increasing Government visibility over commercial activity within both the physical and digital economy.
In this detailed publication, Eliacc Consulting provides a comprehensive review of the major amendments proposed under the Income Tax Act, VAT Act, Tax Procedures Act and Excise Duty Act, together with an assessment of their practical implications for businesses operating in Kenya.
The analysis covers:
- Expansion of withholding tax on digital payment ecosystems
- Software royalty taxation
- Mandatory eTIMS integration
- Offshore capital gains taxation
- VAT reclassification impacts
- Expanded anti-avoidance rules
- SME compliance and operational risks
- Sector-specific business implications
The report also offers practical recommendations aimed at balancing revenue collection objectives with sustainable economic growth and business competitiveness. Access the full publication here:
https://eliacc.co.ke/wp-content/uploads/2026/05/ANALYSIS-OF-THE-PROPOSED-FINANCE-BILL-2026-2.pdf
