The assented three key bills has been signed by President William Ruto into law, as the government pushes for a better the Kenya’s economy, industrialization and digital innovation.
Ruto has signed into law the Income Tax (Amendments), the Special Economic Zones (Amendments) and the Technopolis Bill at State House, Nairobi.
In attendance were Deputy President Kithure Kindiki, ICT Cabinet Secretary William Kabogo, Attorney General Dorcas Oduor, National Assembly Speaker Moses Wetang’ula, National Assembly Majority Leader Kimani Ichung’wah and Minority Leader Junet Mohammed among other senior government officials.
The Income Tax (Amendments) 2026 introduces capital gains tax on property transfers during internal corporate restructuring, providing shareholding proportions. This means the bill will provide transfer reflect the proportional shareholding of the parties involved, exempting capital gains.
The Special Economic Zone (Amendment) Bill 2026 aims to include upstream and midstream for petroleum operations into the framework, introducing a guaranteed 10- year tax incentive for developers, operators and enterprises licensed under the program.
The law will introduce VAT zero-rating on supplies. The removal of 10-year caps on withholding tax exemptions is designed to modernize Kenya economic tax, positioning them as competitive hubs for industrialization and foreign direct investment.
The Technopolis (Amendment) Bill 2026 will establish a legal framework for Kenya’s technology innovation centers, laying the foundation for a robust digital economy. It is also part of the development authority of Kenya’s Vision 2030 development agenda.
It is expected to support the ICT growth, innovation ecosystem and strengthen Kenya’s role as a regional in tech-driven development. It outlines governance structure, licensing procedures and compliance mechanisms for the establishment and management of a Technopolis.
The new amendment bills are meant to build a resilient, investor friendly and innovation-driven system for Kenya. It is set to take effect from July1, 2026.
