Kenya's Finance Bill 2025/2026
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🇰🇪 Understanding Kenya's Finance Bill 2025/2026: A Comprehensive Guide The Finance Bill 2025/2026 introduces several significant tax reforms aimed at enhancing revenue collection, promoting equity, and stimulating economic growth. Let's delve into the key proposals and their implications for individuals, businesses, and various sectors. 1. MAJOR PROPOSED TAX CHANGES a. Income Tax (PAYE) Adjustments Revised Tax Bands : The bill proposes adjustments to the Pay As You Earn (PAYE) tax brackets to align with inflation and revenue needs: Impact : Middle- and high-income earners will experience increased tax obligations, while low-income earners remain unaffected. Enhanced Reliefs : Employers are now mandated to apply all deductions and exemptions before calculating tax owed, ensuring employees benefit fully from available reliefs. b. Value Added Tax (VAT) Reforms VAT on Digital Services : VAT on digital services is set to increase from 16% to 18%, affecting streaming platforms, onl...