- Kenya’s Finance Act 2026 expands VAT by taxing digital financial services delivered through software platforms, including payment and money transfer services, and excludes them from the financial services exemption.
- It removes some VAT exemptions (e.g., denatured ethanol, direction-finding compasses, and some construction inputs) while adding/confirming exemptions for items like dialyzers and certain PPP-related projects.
- The bad debt VAT refund application period is extended from 2 years to 3 years.
- VAT refund claim deadlines are shortened to 12 months, while KRA gets more time to assess claims: 120 days, or up to 180 days if an audit is done.
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.
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