- President William Ruto signed the Finance Bill 2026 into law on 22 June 2026, according to state media, following its passage by the National Assembly reported on 18 June 2026.
- A one-year tax amnesty runs from 1 July 2026, waiving penalties and interest on liabilities accrued to 31 December 2025 where principal tax is settled by June 2027; owners should confirm eligibility with the KRA.
- The Act contains a non-resident landlord tax framework, but the KRA has not yet issued guidance confirming commencement dates or filing mechanics.
Ruto Signs Finance Act 2026; One-Year Tax Amnesty Opens 1 July
President William Ruto signed the Finance Bill 2026 into law on 22 June 2026, according to KBC Digital, following its passage by the National Assembly, reported on 18 June 2026.
Alongside the Act, Kenya has opened a one-year tax amnesty effective 1 July 2026. It waives penalties and interest on liabilities accrued up to 31 December 2025, provided the principal tax is settled by June 2027. Because eligibility and terms may be subject to review, affected owners should confirm their position with the KRA before relying on the waiver.
Non-Resident Landlord Tax Under the Finance Act 2026: Commencement Pending KRA Guidance
The provisions described below are contained in the Finance Act 2026, signed on 22 June 2026, but the commencement date, rates, and filing mechanics have not yet been confirmed by an official KRA notice or the published Act text, and may be phased in. They should not be treated as operative rules until the KRA issues guidance.
The Finance Act 2026 establishes a compliance framework for non-residents who own rental property in Kenya, though its operational commencement remains to be confirmed by the KRA. Professional analyses characterise the framework as a shift away from withholding-only collection toward a hybrid model that places direct registration and filing obligations on the non-resident landlord.
Who is affected: foreign landlords earning rental income from Kenyan property.
Key obligations, pending confirmation: the Act contains provisions requiring foreign landlords to complete a simplified registration with the Commissioner, file monthly returns, and remit a final withholding tax of 30% on gross rental income from immovable property, with returns and payment set to fall due by around the 20th day of the following month. These mechanics await KRA operational guidance and should not yet be treated as active requirements.
Role of property agents: where a property agent is involved, the Act provides that the agent would withhold and remit the tax on the landlord’s behalf — reportedly within five working days of receiving the rent — in which case the non-resident landlord may not need to register separately. This remains subject to KRA confirmation.
Investment-account PIN exemption: the Act is also reported to exempt non-resident persons from the PIN requirement when opening certain investment-bank accounts, a measure aimed at easing cross-border investment.
Zagdim Analysis
The amnesty is the clearest immediate signal for foreign owners. For those with existing, unfiled Kenyan tax liabilities, it opens a limited window to regularise a past position without heavy penalties — but only where the principal is settled inside the stated timeline.
The non-resident landlord framework, by contrast, is documented but not yet operable. Readers should note that:
- The 30% figure is written into the Act but not yet confirmed as an active rule by the KRA.
- The effective date and filing mechanics remain officially unannounced.
- The practical treatment of foreign rental income stays unclear until the KRA issues implementing guidance.
For that reason, no reader should restructure their financial or compliance arrangements on the strength of the figures above alone. The prudent step is to confirm individual obligations with a Kenyan-licensed tax professional before acting.
Kenya’s Finance Act 2026 changes the backdrop for anyone earning rental income from Kenyan property, even though the KRA has yet to confirm how the new landlord rules will operate in practice. If you own or plan to own property there, the sensible move now is to understand where you stand before any deadline pressure arrives, rather than react to unconfirmed figures. Want to understand how this could affect your situation? Tell us your question and we’ll help you think it through.
This article is based on officially verified sources current as of 1 July 2026. Requirements change frequently. Always confirm your specific situation with a licensed Kenyan tax adviser or the KRA directly.
