Kenya's KRA has integrated iCMS with iTax, automating export data into VAT returns from May 2026, requiring exporters to ensure accurate export documentation and PIN capture. The integration will pre-fill zero-rated supplies, eliminate manual entry, and mandate monthly reconciliation of export records against VAT returns.
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Kenyan Wallstreet · about 2 months ago
Kenya’s Finance Bill 2026 proposes a VAT exemption for certain mobile phones, cutting the effective tax burden on imported devices from about 55% to 50%. The exemption would give imported phones a price advantage while local assemblers would lose the ability to recover VAT on inputs, raising their production costs and potentially making Kenyan‑assembled phones more expensive.
Eastleigh Voice · about 2 months ago
Kenya's Revenue Authority reported a loss of Sh9.1 billion in fuel VAT revenue between April and May 2026 after the government cut the fuel VAT rate from 16 % to 8 %. The reduction was aimed at easing consumer pressure from rising fuel prices, significantly reducing KRA's revenue from a key tax stream.
VatCalc · 2 months ago
Kenya's Finance Bill 2026 expands VAT coverage to include a wide range of digital financial and payment processing services, effective 1 July 2026. Commissions earned by payment service providers on these services will be standard-rated for VAT, replacing previous exemptions. The change requires PSPs to reassess VAT treatment, update invoicing systems, and review contracts and pricing structures.
Kenyan Wallstreet · 3 months ago
Kenya Revenue Authority will automatically link export records from the customs platform iCMS to VAT returns in iTax starting May 2026, requiring exporters to have verified export values linked to their PIN and valid electronic tax invoices. This eliminates manual zero‑rated sales declaration, blocks unsupported refund claims at source, and extends oversight to services exports prefilled via electronic invoices.
Kenyans · 3 months ago
The Kenya Revenue Authority will integrate export VAT return data from its integrated Customs Management System (iCMS) with the iTax filing platform effective May 2026. Exporters will see validated export values automatically prefilled in their VAT returns, but must capture their PIN and a valid TIMS/eTIMS zero‑rated invoice number when lodging export documents in iCMS. Only transactions validated and linked to the taxpayer’s PIN and invoice will be accepted in VAT returns.
VatCalc · 3 months ago
Kenya has temporarily reduced VAT on petrol and diesel from 16% to 13% for a three‑month period, effective 15 April to 14 July 2026. The measure, announced under Legal Notice No. 69, aims to ease inflationary pressure from rising global energy prices.
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Key Takeaways
As of May 2026, Kenya's KRA will automatically pre-fill export values as zero-rated supplies in iTax VAT returns, eliminating manual entry.
From May 2026, exporters must secure a certificate of export (or equivalent) for every consignment and ensure the exporter’s PIN is correctly captured on export documents.
From May 2026, exporters and clearing agents must reconcile iCMS export records against VAT return data every month.
From May 2026, exports of goods and services destined for foreign markets, the Single Customs Territory, EPZs, and SEZs will be automatically zero-rated.
From May 2026, only export transactions validated and matched within the system will appear in the VAT return; incomplete or inconsistent data will be excluded.
Primary source
Read the full article at KPMG KenyaThis summary was published on VATfaqs.com on 29 July 2026. It relates to VAT developments in Kenya. The original source is KPMG Kenya.
