Farmers and exporters to save billions in landmark tax shift
Under the proposed Finance Bill 2026, input VAT for agricultural exporters will be halved from 16pc to 8pc...
✨ Key Highlights
Kenyan agricultural exporters are set to save billions of shillings following government reforms aimed at resolving long-standing VAT refund delays and reducing the cost of doing business. The interventions, outlined in the Finance Bill 2026, seek to boost exporter confidence and stimulate reinvestment in key agricultural sectors.
- The Kenya Revenue Authority will implement structural changes, including reducing input VAT from 16 percent to 8 percent and removing excise duty on packaging materials.
- Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe announced these reforms, emphasizing measures to make exporters "competitive, liquid and able to reinvest in Kenya."
- The plan also includes faster offsetting of VAT refunds, special tax treatment for 100 percent exporters similar to EPZs and SEZs, and expanded air freight capacity through Kenya Airways and Turkish Airlines.
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Government Announces Macadamia Ban Lift, Tax Reforms, and an Agricultural Scam Alert - February 2026
Kenya's Agriculture and Food Authority (AFA) has lifted a seasonal ban on the harvesting and trading of macadamia nuts, effective February 1, 2026. The ban was implemented on December 1 of the previous year to ensure nut maturity. In other news, the government has introduced reforms in the Finance Bill 2026 aimed at resolving long-standing VAT refund delays, which will save agricultural exporters billions of shillings. Concurrently, the Ministry of Agriculture has warned Kenyans about fake social media accounts impersonating the Kenya Agricultural and Livestock Authority (KALRO). KALRO explicitly stated it is not affiliated with nine such fraudulent accounts.
