Kenya's proposed Finance Bill 2026 is set to end tax relief for Kenya Airways (KQ) and significantly expand the digital tax net.

• The bill proposes ending the withholding tax exemption for Kenya Airways on payments made to non-resident service providers.
• Key organizations like Kenya Airways, payment processors, software firms, and banks will be impacted by broader definitions of "management or professional fee" and "royalty."
• The proposed changes aim to increase government revenue collection across strategic sectors including aviation, fintech, software, and commerce.

The Kenyan government has proposed a new 5 percent tax on imported second-hand clothing, known as mitumba, under the draft Finance Bill 2026.

• A proposed 5 percent tax on income from imported mitumba clothing and footwear.
• The Government of Kenya is seeking to expand its tax base, especially in the informal sector.
• Analysts caution this could increase prices for affordable clothing, impacting millions of Kenyans and small traders.

An audit by Auditor-General Nancy Gathungu has revealed that the National Treasury illegally diverted Sh30 billion in Eurobond proceeds to cover domestic debt shortfalls, violating the bond's subscription agreement.

• Sh30 billion in Eurobond proceeds were used to cover Treasury Bond shortfalls.
• The National Treasury and Auditor-General Nancy Gathungu are key entities involved.
• The government also defaulted on five bilateral loans for security contracts totaling Sh15.42 billion as of June 30, 2025.