By Brian Kiprono - Reporter
Kenya, 11 May 2026 - Kenyan businesses and foreign investors are set to benefit from major tax and investment reforms after President William Ruto signed three new economic laws aimed at making the country more attractive for investment and innovation.
The laws, assented to at State House in Nairobi on Monday, focus on easing business operations, strengthening investment zones and accelerating the growth of Kenya’s technology sector.
Among the key changes is a new tax relief for companies restructuring internally, a move expected to reduce the cost of doing business.
Under the newly signed Income Tax (Amendment) Act, companies transferring assets within the same corporate group will no longer automatically face tax penalties that previously arose during internal restructuring.
The reforms are expected to especially benefit firms seeking to reorganise ownership structures or move assets between subsidiaries without triggering additional taxes.
Previously, such transfers were often treated by the Kenya Revenue Authority (KRA) as taxable dividends, leading to withholding tax charges.
The new law also introduces changes affecting Capital Gains Tax for non-resident investors and strengthens KRA registration requirements for foreign companies operating in Kenya.
Government officials say the changes are designed to position Kenya as a more investor-friendly destination ahead of the next financial year beginning 1 July 2026.
President Ruto also signed the Special Economic Zones (Amendment) Act, which targets large-scale investments, particularly in the petroleum and energy sectors.
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The law introduces a mandatory 10-year minimum licence for petroleum zone operators to provide long-term certainty for investors, especially those involved in projects such as the South Lokichar Basin oil development in Turkana.
It also removes the previous 10-year limit on withholding tax exemptions for royalties and management fees while allowing some supplies to Special Economic Zone operators to be zero-rated under VAT regulations.
The third law signed was the Technopolis Act, which creates a legal framework for the management and development of Konza Technopolis, Kenya’s flagship smart city project.
The law establishes an authority to oversee the technopolis and introduces a dispute resolution tribunal alongside regulations for technology parks, incentives and penalties.
The government says the reforms are part of broader efforts to improve the ease of doing business, attract private investment and support technology-driven economic growth.
The signing ceremony was attended by Deputy President Kithure Kindiki, National Assembly Speaker Moses Wetang’ula, ICT Cabinet Secretary William Kabogo, Attorney General Dorcas Oduor and other senior government officials.