2025 vs 2026
Year-on-Year Comparison
What was added? What was removed? Compare the landmark 2025 policies with the new proposals introduced in the 2026 framework.
Tax Category
2025 Status
2026 Proposal
The Evolution
Motor Vehicle Tax
None (Did not exist)
2.5% of vehicle value
New Addition
Eco Levy
None
Applied to electronics & plastic
New Addition
VAT on Bread
Zero-rated
16% Standard Rate
+16% Increase
Digital Services
Non-resident entities only
Expanded to Domestic entities
Scope Expansion
Benefit Threshold
Ksh 2,000/mo
Ksh 10,000/mo
5x Increase
Simplified Guide
Finance Bill 2026 At a Glance
A plain-language overview of what changed between 2025 and 2026, and the final summary comparison.
Overview
What Changed Between 2025 and 2026?
Finance Bill 2025 introduced major tax reforms in Kenya. Finance Bill 2026 focused on enforcing those reforms more aggressively.
Finance Bill 2025
- Introduced reforms
- Expanded taxes
- Added new tax systems
- Focused on revenue collection
Finance Bill 2026
- Strengthened enforcement
- Improved digital monitoring
- Automated compliance systems
- Focused on enforcement and visibility
Simple Meaning: 2025 opened the door to more taxes and compliance. 2026 tightened control and increased monitoring.
Final Summary
Finance Bill 2025 vs 2026 Summary
| Area | Finance Bill 2025 | Finance Bill 2026 |
|---|---|---|
| Digital Tax | Expanded | Enforcement strengthened |
| Crypto | Tax reduced | Monitoring expanded |
| eTIMS | Strong implementation | Heavy penalties added |
| VAT | Claim period reduced | VAT clawbacks introduced |
| Businesses | More taxes | More enforcement |
| Employees | Per diem relief increased | Payroll reliefs strengthened |
| KRA Systems | Digital systems expanded | Automated assessments introduced |
| Tax Amnesty | Limited | Major reintroduction |
Final Conclusion: Finance Bill 2025 focused on increasing tax collection. Finance Bill 2026 focuses on monitoring, enforcement, automation, and reducing tax escape routes.