The Kenya Bankers Association (KBA) is opposing a plan by the Kenya Revenue Authority (KRA) to charge Value Added Tax (VAT) on repossessed goods, warning it will increase loan costs for Kenyans.

• The plan, included in the proposed Finance Bill 2026, is expected to raise the cost of credit.
• The KBA is pushing for an amendment to exempt these transactions from VAT, arguing repossession is a recovery mechanism, not a profit-making activity.
• The KRA maintains that creditors act on behalf of borrowers and are responsible for applicable taxes, with a tribunal allowing the 16 per cent VAT to continue.

The Energy and Petroleum Regulatory Authority (EPRA) has launched a public consultation for new electricity retail tariffs set to take effect from the 2026/27 to 2028/29 control period.

• The review will determine future electricity charges for Kenyan consumers.
• Key organizations involved include EPRA, Kenya Power & Lighting Company Plc (KPLC), and KenGen.
• This initiative follows recent public complaints about increased electricity bills and high cost of living, with new consultation dates scheduled for June 2026 across various cities.

Treasury Cabinet Secretary John Mbadi has debunked circulating claims about new taxes in the Finance Bill 2026, specifically addressing cryptocurrency, bread, and mobile money.

• The Bill does not introduce new taxes on crypto or digital assets, but aims to create tax equity.
• The National Treasury clarified that there are no new taxes on digital content creators or VAT on bread.
• Claims of a reintroduced motor vehicle circulation tax and government access to personal mobile money transactions were also denied by Mbadi.