Treasury Cabinet Secretary John Mbadi has announced significant income tax reforms in the proposed 2025/2026 Budget, aiming to enhance revenue while alleviating burdens on workers and businesses.

• Gratuity payments from both public and private sectors will be fully exempt from taxation.
• Kenya Revenue Authority (KRA) is set to receive new powers to negotiate Advance Pricing Agreements with multinational companies.
• New mortgage interest relief will extend to those constructing residential homes, enhancing affordability in homeownership.