Kenya’s Kenya Revenue Authority (Amendment) Act, 2026, takes effect on 5 November 2026, introducing changes to KRA Board membership, providing a guaranteed minimum operational funding allocation and quarterly performance incentives, and updating the revenue laws administered by the authority.
Kenya has enacted the Kenya Revenue Authority (Amendment) Bill, 2026 (National Assembly Bills No. 28 of 2026), which was published on 19 May 2026 and underwent its First and Second Readings in May and June 2026. The legislation was passed by the Committee of the Whole House with amendments on 7 October 2026.
The bill was subsequently forwarded to the President as a brief for assent in October 2026. The Act received presidential assent on 19 October 2026, was published in the Kenya Gazette on 22 October 2026, and takes effect on 5 November 2026.
The objective of the legislation is to enhance institutional efficiency and optimise tax collection without raising tax rates on citizens.
The key highlights of the legislation are:
Board structure and governance
The Bill removes ex-officio seats, so every KRA Board member holds a substantive appointment. It also adds the Managing Director of the Kenya Ports Authority to the Board, since KRA and KPA operations depend on each other.
Funding mechanisms and performance incentives
KRA gets a guaranteed floor of at least 2% of estimated annual revenue collections to fund operations. On top of that, a quarterly incentive lets it keep 3% of whatever it collects above the quarterly estimate.
Modernisation of administered laws
The First Schedule drops repealed statutes and swaps in current equivalents (the Land Act replaces the Government Land Act). The Retirement Benefits Act, Tobacco Control Act and Tea Act are added as revenue-related written laws.
