Ruto Approves Income Tax Changes as New Law Takes Effect
The bill's objective was to facilitate corporate restructuring without tax friction and to prevent double taxation in transactions that do not result in actual market sales...
✨ Key Highlights
President William Ruto has assented to three major bills, including the Income Tax (Amendment) Bill, aimed at reforming tax policies and fostering investment growth in Kenya.
- The Income Tax (Amendment) Bill will allow companies to reorganize ownership and move assets internally without incurring tax penalties, effective July 1.
- Key figure involved is President William Ruto, who signed the bills into law on Monday, May 11.
- The new law exempts transfers of property by a company to its shareholders during internal restructuring, provided assets are distributed proportionally to existing shareholding.
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Public Participation Opens for Finance Bill 2026 Tax Proposals - May 2026
The National Assembly has invited public and stakeholder submissions on the proposed Finance Bill 2026, which includes controversial tax proposals affecting mobile phones, digital assets, and imported mitumba goods. President William Ruto assented to three major bills including the Income Tax (Amendment) Bill, aimed at reforming tax policies and fostering investment growth. Treasury CS John Mbadi stated the government is considering increasing the tax-free PAYE income threshold to Ksh 30,000 for salaried Kenyans earning below Ksh 50,000. The KRA has also announced that salaried Kenyans can file their annual income tax returns even without their P9 forms.
