Finance Act 2025 Kenya
Key Tax Changes and Business Implications
The Finance Act 2025 introduces significant amendments to Kenya’s tax framework affecting corporate taxpayers, multinational groups, digital businesses, manufacturers, investors and employers.
Most provisions took effect on 1 July 2025, with selected measures—including advance pricing agreements—taking effect on 1 January 2026.
The changes reflect the government’s continued focus on revenue expansion, digital economy taxation, investment incentives and compliance enforcement under the Bottom-Up Economic Transformation Agenda.
This alert highlights the most impactful changes and their implications for organizations operating in Kenya.
