09/06/2026
As Kenya prepares for the National Budget 2026, the Finance Bill 2026 proposes significant VAT changes that could impact various sectors. In this , Lillian King'oo, Indirect Tax Manager, Tax & Legal, unpacks the key measures and what they could mean for businesses and consumers:
🔹The Bill seeks to clarify the VAT Act, including specific conditions for excluding finance charges in higher purchase and requiring businesses to revise input tax on unsold goods that become exempt.
🔹It extends the VAT bad debt refund window from two to three years and mandates all suppliers to issue electronic tax invoices, aligning with TPI provisions and an increase in travellers allowance to USD 2000.
🔹Notably, items such as electric vehicles, bicycles, buses, and solar/lithium batteries are proposed to move from zero-rated to exempt.
🔹A key change narrows the VAT exemption for financial services to core intermediation, bringing digital payment services (including processing and gateways) into the VAT ambit, which could increase the cost of digital money transfers.
Join us as we unpack this and more during our annual budget session. Save your seat by registering with the link here: https://deloi.tt/4xqNXQr.