Kenya's Treasury Principal Secretary Chris Kiptoo has indicated potential reductions in both Value Added Tax (VAT) and Income Tax within the upcoming 2026 Finance Bill. This move aims to alleviate the financial burden on taxpayers and boost the economy.

• A potential reduction of VAT from 16% to 15% is under consideration, alongside adjustments to Income Tax.
• Treasury PS Chris Kiptoo revealed these plans during a legislative retreat in Naivasha on Thursday, January 29.
• If implemented, these tax cuts could increase an average household's disposable income by an estimated Ksh3,500 per month, boosting spending and savings.
• The Treasury cautioned that any reductions must be balanced with revenue considerations to avoid compromising government services or fiscal stability.