President William Ruto has signed two tax bills into law, reshaping the board of the Kenya Revenue Authority (KRA) and extending relief on fuel taxes as the country grapples with higher global oil prices.
The President assented to the Tax Laws (Amendment) Bill, 2026 and the Kenya Revenue Authority (Amendment) Bill, 2026 at the Eldoret State Lodge on Friday, October 16. Both bills were sponsored by National Assembly Majority Leader Kimani Ichung’wah.
The Bill was amended to include the Managing Director of the Kenya Ports Authority as a member of the Board.
National Assembly
Changes at KRA
- The Kenya Ports Authority managing director joins the KRA board, a change Parliament described as an efficiency measure linking revenue collection to the country’s main entry point for goods.
- The Attorney-General, the National Treasury Principal Secretary and the KRA Commissioner-General become substantive, rather than ex officio, board members.
- A board member can now be removed for missing three meetings in a financial year without reasonable cause, down from six.
- KRA’s funding is set at a minimum of 2% of estimated annual revenue, plus 3% of revenue collected above quarterly targets.
Fuel VAT relief extended
The tax amendments keep the reduced 8% VAT rate on petrol, diesel and paraffin for a further 90 days after the first relief period ended on October 14. The relief can be extended for another 90 days if conditions in the Middle East do not improve.
The law also changes excise duty on construction materials: tiles will be charged at KSh400 per square metre rather than by weight, duty on selected imported ceramic sanitary fittings drops from KSh50 to KSh30 per kilogram, and qualifying float glass from East African Community partner states is exempted.
