Ruto signs key tax, investment and technology Bills into law

President William Ruto on Monday assented to three key Bills aimed at reforming Kenya’s tax regime, strengthening investor confidence and accelerating the country’s transition into a technology and innovation hub. The President signed into law the Income Tax (Amendments) Bill, the Special Economic Zones (Amendments) Bill and the Technopolis Bill during a ceremony held at State House, Nairobi. 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 Mohamed attended the signing ceremony among other senior government officials. The latest assent marked the seventh presidential assent ceremony of 2026 and underscored the administration’s push to implement legislative reforms geared towards economic growth, industrialisation and digital transformation. Speaking before the signing, Josphat Nanok, the Deputy Chief of Staff in the Executive Office of the President, said the Income Tax (Amendments) Bill seeks to streamline the administration of capital gains tax and align Kenya’s tax regime with international best practices. “The amendments are intended to create a more efficient and predictable tax environment while supporting business restructuring and investment growth,” Nanok said. The Income Tax (Amendments) Bill, 2026 introduces major reforms targeting internal company reorganisations. Under the new law, transfers of property between a company and its shareholders during internal restructuring will be exempt from capital gains tax, provided the transfer reflects the proportional shareholding of the parties involved. The reforms are expected to ease corporate restructuring processes and reduce tax burdens on firms reorganising their operations. The proposed tax changes are expected to take effect in the 2026/27 financial year beginning July 1, 2026. The law also comes amid broader discussions within government on reforms to Pay As You Earn (PAYE), including proposals aimed at expanding tax exemptions for low-income earners. At the same time, the President signed the Special Economic Zones (Amendments) Bill, 2026, which seeks to modernise the Special Economic Zones framework and attract large-scale investments into the country. The amended law integrates upstream and midstream petroleum operations into Special Economic Zones and introduces a guaranteed 10-year tax incentive regime for developers, operators and enterprises licensed under the programme. The law further introduces VAT zero-rating on certain supplies within Special Economic Zones and removes the previous 10-year cap on withholding tax exemptions for royalties and management fees under the Income Tax Act. Ruto also assented to the Technopolis Bill, 2024, which establishes a legal framework for the creation of a Technopolis and the Technopolis Development Authority as part of Kenya’s Vision 2030 development agenda. The legislation is expected to support the growth of innovation ecosystems and attract technology-driven enterprises into the country. The new law outlines the governance structure, licensing procedures and compliance mechanisms for the establishment and management of a Technopolis. It also revokes the earlier Konza Technopolis Development Authority Order and provides for a transition to the new authority structure.