The Finance Act 2026 officially took effect on July 1, ushering in sweeping tax changes that will affect millions of Kenyans, including workers, landlords, betting enthusiasts and businesses, as the government moves to widen the tax bracket.

🇰🇪 Breaking It Down

One of the biggest changes is the introduction of a 20 per cent withholding tax on betting winnings, with gambling companies now expected to deduct the tax before paying winners.

The latest move is a major shift from the previous system, in which the government taxed withdrawals from betting accounts.

For example, in the latest changes, a gambler who wins Ksh100,000 will receive Ksh80,000 after the betting firm deducts Ksh20,000 and remits it to the Kenya Revenue Authority (KRA).

📌 What You Need to Know

Similarly, the Finance Act 2026 has introduced a new tax regime for non-resident landlords earning rental income from property in Kenya.

Under the new law, the foreign landlords will now be required to register with KRA, file monthly returns and pay a final rental income tax by the 20th day of the following month.

Another key change is the introduction of a 1.5 per cent withholding tax on payments made for the sale of scrap metal, with scrap metal buyers now expected to deduct the amount before paying suppliers.

Foreign investors in Kenya's mining and petroleum companies will also face a new 15 per cent tax on repatriated income from January 1, 2027, applying when profits are transferred outside the country.

Workers are among the biggest beneficiaries of the Finance Act 2026, after the government exempted employer contributions to qualifying gratuity schemes from income tax.

The exemption will apply where employment contracts run for at least three years, and the gratuity does not exceed 31 per cent of the employee's earnings during the contract period.

📰 Source: Kenyans.co.ke