Finance Bill 2027 Kenya: Timeline, What Could Change and How to Have Your Say

Updated 21 October 2026

The Finance Bill 2027 will set Kenya’s tax changes for the 2027/28 financial year, and it is arriving months earlier than usual. Because 2027 is an election year, the National Treasury has moved the whole budget calendar forward so that the Finance Act 2027 is passed before Parliament breaks for the August 2027 General Election. This page explains the timeline, what the Bill is likely to cover, what is already in force from the Finance Act 2026, and how you can have your say. We will update it as soon as the Bill is published.

Status as at 17 October 2026

• Finance Bill 2027: not yet published. Treasury says the Bill will be submitted to the National Assembly in January 2027.
• Tax proposals from the public: Treasury invited proposals for the Bill in a public notice dated 27 July 2026. The deadline was 31 August 2026.
• Budget hearings: public sector hearings on the 2027/28 budget opened in October 2026, and ministries were directed to submit their sector budget proposals by 15 October 2026.

The Fast-Tracked Timeline

In a normal year, the Finance Bill is tabled with the budget in April or May and becomes law around the end of June. For 2027/28 the Treasury has brought this forward:

The dates come from the National Treasury’s public notice inviting tax proposals and from statements at the October 2026 budget hearings reported by the Kenya News Agency. Calendars can slip, so we will mark any changes here.

What the Finance Bill Does

A Finance Bill amends the tax laws: the Income Tax Act (including PAYE), the Value Added Tax Act, the Excise Duty Act, the Tax Procedures Act, the Miscellaneous Fees and Levies Act and sometimes others such as the Stamp Duty Act or the Affordable Housing Act. It does not set spending; that is done by the Appropriation Act. Each year’s Bill is used to raise the revenue the budget needs, so the headline question is always which taxes go up, which go down and who is affected.

Treasury’s invitation asked for proposals that are “realistic, fiscally responsible” and that take into account increased spending needs and limited room for more borrowing. It also invited proposals on East African Community customs measures. Treasury has said it is implementing a National Tax Policy and a Medium-Term Revenue Strategy to widen the tax base, streamline incentives and modernise tax administration. Until the Bill is published, any specific tax change you read about is a proposal or speculation, not law.

What Already Changed Under the Finance Act 2026

The Finance Act 2026 was assented to on 23 June 2026 and most of it took effect on 1 July 2026. According to KRA, the main changes for ordinary taxpayers were:

• PAYE bands and the KSh 2,400 monthly personal relief were not changed. Use our PAYE calculator to see your current net pay.
• New filing deadline for individuals: from 1 January 2027, individuals file their income tax returns by the last day of the fourth month after the year of income, which KRA says means 30 April.
• Gratuity exemption conditions: gratuity is tax-free only where the contract is at least three continuous years and the gratuity does not exceed 31% of emoluments for that period. See our gratuity calculator.
• Excise duty: excise on bottled water was removed, fruit and vegetable juices with added sugar or sweetener moved to KSh 20 a litre, specified imported sugar to KSh 40 a kilogram, and betting and gaming deposits attract excise duty of 5%.
• VAT: fees charged by payment service providers for digital payment services are not exempt from VAT, and the period to claim VAT refunds on bad debts went from two years to three years.
• Tax amnesty: penalties and interest on tax due up to 31 December 2025 can be waived if the principal tax is paid by 31 December 2026.

How to Have Your Say on the Finance Bill 2027

The Constitution requires public participation in public finance. Once the Bill is tabled, the National Assembly’s Departmental Committee on Finance and National Planning will invite written memoranda from the public through newspaper adverts and the Parliament website, and may hold public hearings in the counties. To make your submission count:

1. Name the clause you are commenting on.
2. Say clearly whether you support it, oppose it or want it amended, and how.
3. Explain the effect on you, your business or your sector, with figures where you can.
4. Submit before the deadline in the notice, by the method it gives.

What We Will Add When the Bill Is Published

As soon as the Bill is tabled we will publish a clause-by-clause summary in plain English, update our calculators where pay or prices are affected, and mark each change as “as published” or “as amended” through committee stage. Sign up to our newsletter to get the summary when it lands.

Frequently Asked Questions

When will the Finance Bill 2027 be published?

Treasury says it will submit the Bill to the National Assembly in January 2027, months earlier than usual because of the August 2027 election.

Will PAYE change in 2027?

We do not know yet. The Finance Act 2026 left PAYE bands and personal relief unchanged. Any change would have to come through the Finance Bill 2027.

What is the new tax return deadline?

KRA says that from 1 January 2027 individuals must file by 30 April, instead of 30 June.

Can I still send tax proposals to Treasury?

The Treasury deadline was 31 August 2026. You can still comment once Parliament invites submissions on the published Bill.

Where can I read the Finance Act 2026?

KRA publishes the Act and a guide to what it means for taxpayers on its website.

Status as at 17 October 2026. This page will be updated when the Finance Bill 2027 is published. General information, not tax advice.