Explainer: What Ruto’s new tax laws mean for motorists, builders and KRA
President William Ruto has signed two tax laws that will overhaul the financing and governance of the Kenya Revenue Authority (KRA). The Tax Laws (Amendment) Act, 2026, extends the reduced Value Added Tax (VAT) rate on petroleum products from 16 per cent to 8 per cent for another 90 days, while introducing changes to the taxation of selected construction materials.
The Kenya Revenue Authority (Amendment) Act, 2026, changes the composition of KRA’s board and establishes a funding framework tied to projected revenue and collections above quarterly targets. These measures aim to cushion consumers against high fuel prices, ease construction costs, and improve revenue collection without introducing additional taxes.
However, the practical impact will depend on how the provisions are implemented and whether the intended benefits reach consumers and businesses.
Brief written by urgent.news from Capital FM Kenya's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
