- The Finance Bill, 2026 proposes to increase the VAT-free allowance for returning passengers from USD 300 to USD 2,000.
- This aims to reduce the tax burden and improve the travel experience by allowing higher-value goods to be brought in without VAT.
- The change aligns the exemption with current economic and inflationary trends.
- There may be enforcement challenges for the Kenya Revenue Authority in distinguishing personal baggage from goods intended for resale.
- The proposed effective date is 01 July 2026.
Source: assets.kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Kenya"
- Kenya Introduces Reverse Invoicing under eTIMS: Expanding Control Over Supplier Compliance
- KRA Loses Sh9.1 Billion After Fuel VAT Cut
- Kenya Plans VAT Reform to Ease Flower Exporters’ Cash Flow Challenges
- Kenya Plans VAT Cut on Horticulture Inputs to Boost Flower Exports
- Kenyan Flower Exporters Alarmed by Delayed VAT Refunds
