Editor's Review

President William Ruto on Friday, October 16, signed the Tax Laws Amendment Bill 2026 into law at the Eldoret State Lodge. 

President William Ruto on Friday, October 16, signed the Tax Laws Amendment Bill 2026 into law at the Eldoret State Lodge. 

The bill, which was introduced in the National Assembly by Kikuyu MP Kimani Ichung’wah, amends section 5 of the Value Added Tax (VAT) Act and sets a reduced VAT rate for petroleum products at 8 percent from 16 percent. 

National Assembly Clerk Samuel Njoroge, while highlighting the bill, said the new law sustains 8% VAT on petroleum products for 90 days. 

He noted that the VAT can be extended for an additional 90 days if the crisis in the Middle East does not improve.  

“The bill sustains the 8 percent VAT application on petroleum products to ensure that the effect of the crisis that has been seen in the Middle East does not affect the Kenyan economy. The bill ensures that the 8 percent VAT is sustained for a period of 90 days, and if the situation in the Middle East does not improve, it is extended for another 90 days,” said Njoroge. 

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Screengrab image of President William Ruto assenting to bills at the Eldoret State Lodge.

The new law also changes the basis for taxing tiles from weight in kilograms to area in square meters, with the rate reduced to Ksh400 per square meter.

It further reduces the tax on ceramic instruments from Ksh50 to Ksh30 per kilogram.

President Ruto also assented to the Kenya Revenue Authority (Amendment) Bill, which provides for the Kenya Ports Authority (KPA) Managing Director to sit on the KRA Board. 

“It recognizes the symbiotic relationship between the management of the Kenya Ports Authority and revenue collection. It therefore brings the Managing Director of KPA into the board of the Kenya Revenue Authority so that decisions made in KRA are also felt in KPA. 

The legislation also makes the Attorney-General, the Principal Secretary for Finance and the KRA Commissioners substantive members of the KRA Board, rather than serving as ex-officio members as previously provided.

This comes a month after President William Ruto signed four new bills into law at State House, Nairobi. 

The Head of State assented to the four bills on Tuesday, September 8. 

The bills include: the National Council for Population and Development Bill, Air Passenger Service Charge Amendment Bill, Public Finance Management Amendment Bill and Trust Administration Bill.

Speaking during the ceremony, Njoroge said the National Council for Population and Development Bill re-establishes the National Council for Population and Development. 

He also said the Air Passenger Service Charge Amendment Bill will allow the Kenya Revenue Authority (KRA) to remit funds collected from the air passenger service charge directly to the Kenya Airports Authority (KAA), Kenya Civil Aviation Authority (KCAA), Kenya Meteorological Service Authority (KMSA) and Tourism Fund without additional processes. 

The Public Finance Management Amendment Bill 2025, on the other hand, amends the public finance management framework which governs how national and county governments manage public resources.

Meanwhile, the Trust Administration Bill provides a legal framework for the administration of trusts in the country.