Businesses Support Tax Amnesty but urge reform to refund laws
The proposed tax amnesty program, which targets tax liabilities accrued up to December 31, 2025, offers taxpayers full relief from penalties and interest, provided they clear their principal tax amounts before December 31, 2026. - Kenya breaking news | Kenya news today | Capitalf..
✨ Key Highlights
Kenyan businesses broadly support a proposed tax amnesty program under the Finance Bill, 2026, but are urging lawmakers to extend deadlines and reform laws surrounding tax refunds to avoid liquidity issues.
- The proposed tax amnesty offers full relief from penalties and interest on tax liabilities accrued up to December 31, 2025, if principal amounts are cleared by December 31, 2026.
- Key stakeholders, including KEPSA (Kenya Private Sector Alliance) representing over two million businesses, and tax advisory firm Grant Thornton, have submitted proposals to the National Assembly Departmental Committee on Finance and National Planning.
- Concerns were also raised about a proposed drastic shortening of the annual income tax return filing deadline from six months to four months, and the impracticality of a one-month deadline for "Nil" returns.
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Finance Bill 2026 Draws Mixed Reactions From Stakeholders - May 2026
Kenyan businesses broadly support a proposed tax amnesty program under the Finance Bill 2026, but are urging lawmakers to extend deadlines and reform laws surrounding tax refunds to avoid liquidity issues. Kenya's private sector is pushing back against the proposed digital tax in the Finance Bill 2026, warning it could harm financial flows and the tax base. Stakeholders and the National Assembly's Finance Committee are raising concerns about potential system inefficiencies at the Kenya Revenue Authority, opposing a proposal to shorten the annual tax filing deadline. Separately, Kenyan lawmakers are cautioning the National Treasury against its Sh4.82 trillion budget for the 2026/27 financial year, citing the risks posed by rising public debt and high oil prices amid global instability.
