Treasury Proposes New Taxation Rules Targeting Companies Evading Tax
The new measures will aim to increase transparency and prevent aggressive tax planning by large companies, especially those in key sectors...
✨ Key Highlights
Kenya's Treasury has unveiled draft tax regulations proposing a 15 per cent minimum corporate tax for multinational companies. This move aims to prevent profit shifting and ensure global firms contribute their fair share to Kenya's revenue, aligning with the OECD's global minimum tax framework.
- The proposed rules will apply to multinational groups with an annual consolidated turnover of at least €750 million (approximately Ksh96.92 billion).
- Treasury Cabinet Secretary John Mbadi has invited public feedback on the draft by December 3.
- Multinational firms will pay a top-up tax if their effective tax rate in Kenya falls below 15 per cent, ensuring all large companies meet the minimum threshold.
- Public entities, pension funds, sovereign wealth funds, and real estate investment vehicles will be exempt.
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Treasury Proposes 15% Minimum Tax as KEBS Mandates New 0.2% Levy on Goods - November 2025
Kenya's Treasury has unveiled draft regulations proposing a 15 per cent minimum corporate tax for multinational companies to prevent profit shifting and align with the OECD's global minimum tax framework. Separately, the Kenya Bureau of Standards (KEBS) has mandated all manufacturers to remit a new standards levy, warning of severe penalties for non-compliance. Following regulations gazetted in August, a 0.2% levy on the customs value of goods or services is now required. Meanwhile, the Ministry of ICT has voiced opposition to a proposed amendment to the Energy Act that would permit county governments to levy charges on public power lines, expressing concerns that it could significantly increase broadband internet costs.
