The Kenya Revenue Authority (KRA) has announced significant changes to Value Added Tax (VAT) regulations under the Finance Act 2026, notably extending the waiting period for businesses seeking VAT refunds on unpaid debts.

• The time a business must wait to apply for a VAT refund on qualifying bad debts has increased from two years to three years.
• Key individuals and organizations involved include the KRA.
• Other changes affect VAT on digital services, exempt supplies, returning passenger allowances, outsourcing, hire-purchase finance charges, and tour operator services.