Kenya's Treasury CS John Mbadi has ruled out new taxes in the Finance Bill 2026, shifting focus to improving revenue collection efficiency by the Kenya Revenue Authority (KRA).

• The government aims to enhance tax compliance and reduce leakages, particularly in areas like rental income.
• Key individuals involved include Treasury CS John Mbadi and officials from the Kenya Revenue Authority (KRA).
• This strategy shift follows public backlash against previous tax increases and increased KRA scrutiny on mobile money transactions and tax filings.

The Kenya Revenue Authority (KRA) is intensifying its crackdown on taxpayers filing nil returns by monitoring mobile money transactions. This initiative aims to ensure accurate income declaration and combat tax evasion.

• The KRA will now flag mobile money transactions for individuals filing nil returns.
• FCPA Maurice Oray, Deputy Commissioner in the Policy and Tax Division at the KRA, announced the new measures.
• The authority will introduce pre-filled tax returns, requiring taxpayers to confirm or dispute the captured income details, starting this year.

The Central Bank of Kenya (CBK) has confirmed that older series banknotes, except the Ksh1,000 note, remain legal tender amidst public confusion.

• All Ksh500 banknotes, both old and new series, are still valid for payment.
• The Central Bank of Kenya (CBK) is advising traders to accept these notes and direct confused customers to commercial banks if issues persist.
• Only the old Ksh1,000 note was demonetised in 2019; other older denominations are being phased out gradually without a set timeline.

Kenya's Treasury plans to utilize the Petroleum Development Levy (PDL) to stabilize fuel prices, rejecting calls for direct subsidies.

• The PDL, currently set at Ksh5.40 per litre, will be used to absorb costs and prevent sharp increases.
• Treasury CS John Mbadi confirmed this approach, diverging from former government policies.
• Industry players like the Petroleum Outlets Association of Kenya (POAK) warn of potential shortages, with an estimated 20% of stations already facing supply issues.