marie kihara

Tax and Finance

[Mwango Capital @MwangoCapital]

President William Ruto has assented to the Finance Bill 2026 at State House, Nairobi, making it the Finance Act 2026, with Treasury expecting the new law to raise over KES 100B.

— Dropped measures include KRA’s proposed power to issue agency notices while tax disputes are under High Court appeal, and enhanced taxes on imported and locally assembled mobile phones, with estimated revenue impact of KES 18.7B and KES 18.15B respectively.

— The Act leaves the mitumba tax regime unchanged, removes proposed excise duty on mobile phones and bottled water, and raises the duty-free allowance for personal goods to USD 2,000 from USD 300.

— Remaining revenue measures are concentrated in excise duty, including imported sugar where duty rises to KES 40.00/kg from KES 7.50/kg, tobacco products, antique and classic vehicles at 50% of excisable value, imported MDF, plywood, particle boards, timber, shower heads and heating elements.

— The Act extends the tax amnesty to December 2026, raises the Affordable Housing Levy collection fee to up to 2.0% from 0.5%, cuts the Road Annuity Fund allocation to KES 1.50/litre from KES 3.00/litre, and sets the e-tax system non-compliance penalty at 5% of tax due instead of double the tax due.

[Julians Amboko @AmbokoJH]

I know we are all heavy on Finance Bill 2026 & submissions but the Central Bank of Kenya (Amendment) Bill, 2026 introduced in the National Assembly this afternoon is extremely consequential.

What are we seeing here?

· There's a proposal to widen the window for CBK's accumulation of precious metals.

1. Currently, the law provides for "buying, selling, importation, export, hold or otherwise dealing in gold or foreign exchange under such terms and conditions as it shall determine".

2. The new Bill proposes to widen this by providing for "buying, selling, importation, export, transfer, hold, refine, or otherwise deal in gold, gold coins & bullion, silver, platinum, any other precious metals or foreign exchange under such terms & conditions as it shall determine.

· There's a proposal to extend the period during which the CBK may extend emergency liquidity assistance to banks or microfinance institutions from the current 6 months to 12 months

· There's a proposal to create a window for CBK to grant loans or advances for fixed periods, not exceeding 3 years, to the Kenya Deposit Insurance
Corporation (KDIC) on the security of Treasury Bills
or other Government securities specified by
the Bank

· Important to observe the widening of the mandate around liquidity, solvency and proper functioning of a stable market-based financial system. The new bill unbundles this into two:

1. Liquidity, solvency, proper functioning &
integrity of a market-based financial system
2. Soundness, safety, and effective regulation of
the banking system

Musings:

· This Bill is a statement around banking sector stability in the country. It is important to read it against the backdrop of the ongoing recapitalisation that has entered its year 2 hurdle in 2026 (i.e. Kes 5.0 billion from Kes 3.0 billion as at close of 2025)

· The Microfinance sector has been haemorrhaging quite a bit with about a decade now of heavy losses registered. Extending that window for emergency liquidity from 6 to 12 months speaks to this reality

· On precious metals & the widened scope, I read here a signal around the growing quest to de-risk the apex bank's portfolio away from US$ & Gold concentration. Curious to see how much of the "foreign currency" bit will be CN¥ denominated given the swap in the SGR facility from US$ to CN¥

[Mwango Capital @MwangoCapital]

The High Court has confirmed that VAT is chargeable on the full staff outsourcing fee, including salaries, wages and statutory deductions, after finding that Stratostaff acted as a principal supplier of staffing services and not merely as an agent.

The ruling narrows the use of the VAT disbursement exclusion under Section 13(5), likely raising VAT costs for outsourcing arrangements where the service provider retains employer obligations, payroll control and staffing risk.

Link: https://t.co/Xaed1k6U1X

[marie kihara @mshefaaa]

@pitandirangu I did an adjustment for the non-etims items, uploaded the csv plus supporting documents and still my client received that message from KRA! I don't get it! Why are we doing ajustments if they are going ahead and ignoring them without reason given.

[Mwango Capital @MwangoCapital]

PwC note on the new notice by KRA:

"Taxpayers must ensure that every expense claimed in their 2025 income tax return is backed by an eTIMScompliant invoice, unless exempt under the TPA and eTIMS regulations."

[marie kihara @mshefaaa]

@Wanjiru_chege08 @coolkid__8 TOT is a final tax on business income. TOT payers don't pay the annual corporate tax

[marie kihara @mshefaaa]

@pitandirangu I have another one who has additional assessment because IFMIS data and VAT declarations don't match. They "ate" the VAT. These patients sometimes know what they are doing. But county government is also to be blame for doing payments without etims invoices.

[The People’s President @bonifacemwangi]

This government started by calling us indisciplined, treasonous criminals, and blamed our parents for how they raised us, called our mothers Kumanina, and when our moms raised their voices about the state of our healthcare, they get abducted from hospital beds. Evil Ruto regime!

[marie kihara @mshefaaa]

If the shoe fits.....

[Robert ALAI, HSC @RobertAlai]

Watching this video, you realise that Sakaja is seriously attacking President @WilliamsRuto

[marie kihara @mshefaaa]

@KRACorporate Why doesn't your system allow for automatic balancing of VAT? Why would a tax payer owe you 200k in VAT but at the same time have VAT credits of 300k, yet your expectations is for tax payer to pay the 200k and ask for a refund of 300k. Simplify this.

[marie kihara @mshefaaa]

@lawrencekitema Mine seems to have missed my door 😔

[marie kihara @mshefaaa]

@DoctorReign Doc, what of those children with Asthma, should we layer them up?

[marie kihara @mshefaaa]

@weecramp @GOtvKenya_ My decoder is showing the same thing "video unavailable" . I have checked and cables are okay. So is the software updated .ICU 2016880302

[marie kihara @mshefaaa]

@gabrieloguda Lecturing in these public universities is a die quick venture..I have been following up for my 2017,2018,2019 part time teaching payments from a public university in Juja with little success. So far I have only managed to get payment for 2017 and a bit of 2018. It's worrying

[marie kihara @mshefaaa]

@BarackObama This Kenyan movie.

[marie kihara @mshefaaa]

@pitandirangu @cheruiyotkb Please [email protected]

[marie kihara @mshefaaa]

@KenyaPower_Care these two posts are at the verge of falling on houses and people. Please act before it's too late. Githurai 45 progressive area, a few metres past PEFA kimbo all nations church, on your way to Mwihoko.

[marie kihara @mshefaaa]

@ImmigrationDept kindly update status for tracking number 1110765974

[marie kihara @mshefaaa]

@mnehema @SokoAnalyst @SeweS_ @CollinsBriche They are not denied jobs, because they don't even get shortlisted in the first place..the first criteria for shortlisting are those crb,kra,eacc,good conduct certificates..you miss one, you are out...