The Kenya Revenue Authority (KRA) has opened public consultations on two new draft Income Tax regulations: the Minimum Top-Up Tax and the Advance Pricing Agreement. These drafts were prepared by Treasury Cabinet Secretary John Mbadi as part of ongoing efforts to refine Kenya’s tax framework.
In a notice published in the MyGov newspaper on Tuesday, November 4, KRA urged taxpayers, professionals, and interested members of the public to submit their feedback by Tuesday, December 2, 2025. The authority noted that this exercise complies with the Statutory Instruments Act and Article 201 of the Constitution.
Comments can be sent to the Commissioner General, Kenya Revenue Authority, P.O. Box 48240-00100, Nairobi, or emailed to stakeholder.engagement@kra.go.ke.
KRA Commissioner General Humphrey Wattanga emphasised the importance of public participation in shaping tax policies that balance national revenue goals with fairness and economic growth.
Under the draft Income Tax (Advance Pricing Agreement) Regulations, 2025, any individual or entity engaging in a covered transaction can apply for various agreements, unilateral, bilateral, or multilateral, depending on whether a tax treaty exists. These agreements aim to ensure transparency and consistency in transfer pricing arrangements between related entities.
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Meanwhile, the Income Tax (Minimum Top-Up Tax) Regulations, 2025 target multinational enterprises with consolidated annual turnovers of €750 million or more. The tax applies to resident entities or those with permanent establishments in Kenya that fall under such global groups. It is computed as the difference between the minimum top-up tax and the effective tax rate for that year, multiplied by the company’s excess profits.
In a related development, KRA has tightened the conditions for obtaining the Tax Compliance Certificate (TCC). All businesses and individuals earning income beyond employment must now be fully integrated into the Electronic Tax Invoice Management System (eTIMS) or Tax Invoice Management System (TIMS).
The authority reaffirmed its commitment to promoting compliance through constant engagement, taxpayer education, and simplified processes that accommodate the diverse needs of taxpayers.
The introduction of these two regulations marks another step in aligning Kenya’s tax system with international standards while widening the revenue base.
