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.