NAIROBI, Kenya – President William Ruto has signed two amendment laws introducing changes to petroleum taxation, construction-related excise duty and the governance of the Kenya Revenue Authority (KRA).
The President assented to the Tax Laws (Amendment) Bill, 2026, and the Kenya Revenue Authority (Amendment) Bill, 2026, at Eldoret State Lodge in Uasin Gishu County on Friday, October 16.
The tax amendments extend the reduction of Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent for another 90 days, a measure the government says is intended to cushion Kenyans against high fuel prices.
The changes also introduce excise duty reforms affecting tiles, sanitary ware and glass products, with the aim of lowering construction costs, supporting the housing industry and creating jobs.
Separately, the Kenya Revenue Authority (Amendment) Act introduces governance and financing reforms intended to improve the authority’s efficiency and revenue collection without increasing taxes.
KPA Managing Director Gets Seat On KRA Board
One of the key changes under the Kenya Revenue Authority (Amendment) Act, 2026, is the inclusion of the Managing Director of the Kenya Ports Authority (KPA) as a member of the KRA board.
The move is intended to strengthen coordination between the two institutions, whose operations are closely linked through port activities, customs administration and revenue collection.
According to a brief from the National Assembly, the amendment recognises the interdependence between KRA and KPA and seeks to improve operational efficiency.
“This is an efficiency measure due to the co-dependent nature of the operations of both the Kenya Revenue Authority and the Kenya Ports Authority,” the brief states.
The inclusion of the KPA managing director is expected to improve coordination involving port operations, customs processes and logistics tracking.
Law Changes How KRA Board Members Are Designated
The new law also revises provisions governing the composition of the KRA board by removing the ex-officio designation from relevant membership provisions.
The changes affect the legal framework relating to the Principal Secretary for the National Treasury, the Attorney General and the KRA Commissioner General, including provisions on board membership, tenure and termination.
The amendments followed parliamentary consideration and passage of the Bill on October 7, 2026, after it was sponsored by National Assembly Majority Leader Kimani Ichung’wah.
The reforms form part of efforts to strengthen the authority’s governance and improve the coordination of its operations.
Government Says Tax Changes Will Support Businesses
The tax amendments also target construction-related costs through changes to excise duty on tiles, sanitary ware and glass products.
The government says the measures are intended to reduce costs in the construction sector, support housing development and encourage job creation.
The extension of the reduced VAT rate on petroleum products is aimed at providing temporary relief to motorists, transport operators and other consumers affected by fuel prices.
The two laws address separate but related areas of economic administration: the taxation of selected products and the institutional framework governing revenue collection.
KRA Board Leadership
At the time of the announcement, the KRA board was chaired by Ndiritu Muriithi, while Adan Mohamed served as Commissioner General.
Other officials associated with the board’s government representation included Attorney General Dorcas Oduor and Lawrence Kibet, who served as an alternate director to the Principal Secretary for the National Treasury.
The board’s non-executive members included Hadi Sheikh Abdullahi, Richard Boro Ndung’u, Lydia Cherono Rono, Risper Olick, Ashif Kassam and Shimaka Leonard.
Paul Matuku coordinated board administration and corporate governance matters through his role as Commissioner of Legal and Board Services.
The latest amendments introduce a formal role for the KPA managing director in KRA’s board structure, while the extended fuel VAT reduction provides temporary tax relief as the government pursues wider changes to revenue administration and selected product taxes.
