Between 2023 and 2026, Kenya changed many of the rules that individuals and small businesses deal with every month. Keeping track of them one by one is hard, so this article puts them in one timeline. Each item links to a fuller explanation, and the current rate is read from the site's rates table, which is updated when the law changes.
2023
- Capital gains tax moved from 5 percent to 15 percent on gains from the disposal of property under the Finance Act 2022, with effect from 1 January 2023. The current rate is 15%. See capital gains tax increased to 15 percent and use the capital gains tax calculator.
- Turnover tax rose from 1 percent to 3 percent of gross sales from 1 July 2023, and is now 3%. See turnover tax rose from 1 to 3 percent and the turnover tax calculator.
- Excise on financial and telecom services was adjusted: excise duty on airtime, money transfer and bank fees.
2024
- Monthly Rental Income tax was cut to 7.5 percent from 1 January 2024. It stands at 7.5%. See monthly rental income tax cut to 7.5 percent and the rental income tax calculator.
- NSSF contributions began rising in stages from February 2024 under the NSSF Act 2013: NSSF contributions explained and, for the next stage, NSSF rates change from February 2026.
- SHIF replaced NHIF from October 2024, with contributions of 2.75% of gross pay and a minimum: SHIF replaced NHIF: what changed.
- The Affordable Housing Levy of 1.5% each for employee and employer was reintroduced and, with SHIF, made deductible before PAYE: affordable housing levy explained and housing levy and SHIF now deductible before PAYE.
- 27 December 2024: The Tax Laws (Amendment) Act 2024 raised the staff meals exemption to KES 5,000 a month, set the post-retirement medical deduction cap and updated the pension contribution limit.
- Minimum wage rose by about 6 percent from 1 November 2024.
2025
- 1 July 2025: Per diem exemption raised to KES 10,000 a day: per diem and staff meals exemptions raised.
- 1 July 2025: Pension withdrawal rules changed: pension withdrawal tax from July 2025.
- Betting excise changed to 5 percent of amounts deposited into customers' wallets: betting tax changes: excise and winnings.
- The significant economic presence tax replaced digital service tax: digital service tax replaced by SEP tax.
- Shorter deadlines for VAT refund claims: shorter deadlines for VAT refund claims.
- Loss carry-forward limited to five years: five-year limit on carrying forward tax losses.
2026
- 2026: The penalty for not using the electronic tax system was revised: new penalty for not using the electronic tax system.
- February 2026: NSSF contributions step up to the next stage: NSSF rates change from February 2026.
- 1 May 2026: New minimum wage order, with KES 18,047.40 for a general labourer in the main cities: minimum wage order 2026.
- 1 July 2026: The Income Tax Act as consolidated shows straight-line investment allowances, 7.5 percent rent withholding for residents and the current excise bands: capital allowances are now straight-line, withholding tax on rent is 7.5 percent and vehicle and motorcycle excise rates.
What to do with this timeline
- Check your payroll and pricing against the current figures, using the date box in the calculators for past periods. Start with the PAYE calculator.
- Compare your returns for each year with the rules in force at the time.
- Look for claims you missed. A change that helps you, such as a higher exemption, may be claimable on your return: how to claim a PAYE refund.
- Keep a log of future changes in the KRA obligations register.
Always verify a figure against the Act or KRA before relying on it for a large decision, since later Finance Acts may have changed it. The method for staying up to date is in how Finance Acts change your taxes and how to follow tax changes in Kenya.
Frequently asked questions
Is this timeline complete? No. It covers the changes that affect most individuals and small businesses. Specialist sectors have more.
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How do I see the old rules? Enter an earlier date in the date box of the relevant calculator to apply the rates in force at that time.
Will the figures here stay current? The figures in this article read from the rates table, which is updated when the law changes. Always confirm with KRA for important decisions.
Where do I report an error? Use the contact page and tell us which statement you think is wrong and your source.
Related tools and reading
- Free calculator: PAYE Calculator
- Free calculator: Turnover Tax Calculator
- Free calculator: Rental Income Tax Calculator
- Excel template: Seasonal sales and stock planner
- Excel template: Cost of goods sold monthly workbook
- Excel template: Simple income and expense log
- Guide: How Finance Acts change your taxes, and when each change takes effect
- Guide: Per diem and staff meals exemptions raised: what employers should know
- Guide: How to follow tax changes in Kenya: sources you can trust