The Kenya Revenue Authority (KRA) is seeking expanded powers through the Finance Bill 2026 that would allow them to freeze taxpayer bank accounts and assets even when a tax assessment is under appeal.

• The proposed amendment seeks to delete a clause in the Tax Procedures Act currently protecting taxpayers with appeals from KRA agency notices.
• This marks the fifth attempt by the National Treasury to introduce this change, previously including requirements for taxpayers to pay a percentage of the disputed tax.
• Tax experts express concern that this could be abused and may lead to liquidity issues for businesses, potentially mirroring practices in Uganda and Tanzania.

Co-operative Bank of Kenya has announced a significant increase in its first-quarter net profit, rising by 21.3 percent to Sh8.41 billion for the period ending March 2026. This growth was fueled by increased interest income and a notable expansion in customer deposits and lending.

• The bank's net profit reached Sh8.41 billion, a 21.3 percent year-on-year increase.
• Key drivers included higher net interest income of Sh15.98 billion and a 14.3 percent growth in total assets to Sh884.6 billion.
• Co-operative Bank's Chief Executive Officer, Gideon Muriuki, highlighted the bank's focus on digital growth and customer-centered banking, with over 90 percent of transactions now digital.

PwC has warned that Kenya's Finance Bill 2026 could significantly increase the cost of digital payments and tighten tax on cross-border technology services.

• A key proposal includes subjecting merchant service and interchange fees from card payments to withholding tax.
• The tax advisory firm PwC highlights concerns about expanding the definition of royalties to include software distribution and payment processing systems.
• Proposed tax changes are set to take effect from July 1, 2026, unless Parliament intervenes.