Kenya Proposes New Regulations Across Tax, Finance, and Power Sectors - September 2025

The Kenya Revenue Authority (KRA) is proposing new regulations, the Income Tax (Significant Economic Presence) Regulations, 2025, to compel Kenyan banks to withhold taxes for non-compliant foreign technology firms. In the financial sector, thirty-five SACCOs face sanctions for failing to register with the Financial Reporting Centre (FRC) under new anti-money laundering regulations. This crackdown is part of Kenya's effort to address its "grey listing" by the Financial Action Task Force (FATF). Additionally, new customer service standards are set for the power industry through the Draft Energy (Electricity Reliability, Quality of Supply and Service) Regulations, 2025. These regulations aim to enhance accountability and improve customer experience for the electricity sector.

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Tuesday 2:45 PMThe Kenyan Wall Street

KRA Pushes to Have Banks, Clients Withhold Taxes for Non-Compliant Foreign Firms

The Kenya Revenue Authority (KRA) is proposing new regulations allowing it to compel Kenyan banks, payment processors, and customers to withhold and remit taxes on behalf of non-compliant foreign technology companies. These draft Income Tax (Significant Economic Presence) Regulations, 2025, aim to broaden the tax base beyond the lapsed Digital Service Tax.