Kenya

The Finance Act, 2026

The Finance Act, 2026 has introduced some significant amendments. Some of these include: 

• Introduction of an exemption for certain employment income earned by non-resident individuals employed by, or engaged on behalf of, a resident air transport operator designated as a national carrier, to the extent that the income relates to duties performed outside Kenya and connected to the operator’s international transport operations.
• Introduction of an exemption for gratuity contributions in respect of employment or services rendered, to the extent that the gratuity relates to a contract of service of at least three years, or a renewal or extension of such contract beyond three years, and the gratuity paid does not exceed 31% of the employee’s emoluments for the period of the contract.
• Exemption of pension death benefits from tax, with pension benefits paid to dependants or beneficiaries upon the death of a member now expressly exempt from income tax.
• Introduction of a final non-resident rental income tax on income derived from the use or occupation of immovable property situated in Kenya.