PwC warns Finance Bill 2026 could make digital payments costlier
the consultancy flagged a proposal to subject merchant service and interchange fees from card payments to withholding tax, saying the move risks raising the cost of cashless transactions for businesses and consumers. Kenya breaking news | Kenya news today |..
✨ Key Highlights
PwC has warned that Kenya's Finance Bill 2026 could significantly increase the cost of digital payments and tighten tax on cross-border technology services.
- A key proposal includes subjecting merchant service and interchange fees from card payments to withholding tax.
- The tax advisory firm PwC highlights concerns about expanding the definition of royalties to include software distribution and payment processing systems.
- Proposed tax changes are set to take effect from July 1, 2026, unless Parliament intervenes.
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KRA Sweeping Powers in New Finance Bill - May 2026
The Kenya Revenue Authority is seeking expanded powers through Finance Bill 2026 that would allow them to freeze taxpayer bank accounts and assets even when a tax assessment is under appeal. PwC has separately warned that Kenya's Finance Bill 2026 could significantly increase the cost of digital payments and tighten tax on cross-border technology services. Meanwhile, Co-operative Bank of Kenya announced a 21.3 percent increase in first-quarter net profit to Sh8.41 billion for March 2026, driven by increased interest income and expansion in customer deposits and lending.
