What to expect as new rules, tax measures in the Finance Act 2026 take effect today

President William Ruto assents to Parliamentary Bills at State House, Nairobi. [PCS]

Majority of new rules and tax measures introduced by the Finance Act 2026, will take effect today. While the Act, which came into effect last week Tuesday after Presidential assent, has been billed as largely focused on reforming tax administration rather than introducing new tax measures, there are instances where Kenyans will have to pay higher taxes for certain goods and services. 

Among the clauses effective today include those empowering KRA, which can now summarily collect certain debts as well as increased cost of doing business for local manufacturers relying on imported materials such as sugar and wooden boards to produce goods locally.