Explainer: What Ruto’s new tax laws mean for motorists, builders and KRA
Election
Originally published by News – Capital FM — Read the original article →
NAIROBI, Kenya, Oct 16 — President William Ruto has signed two tax laws overhauling the financing and governance of the Kenya Revenue Authority (KRA), changing the taxation of construction materials and allowing the extension of the reduced 8 per cent VAT rate on petroleum products for a further 90 days.
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.
