Kenya is stepping up efforts to improve its investment environment following a high-level meeting between Invest Kenya, the Kenya Private Sector Alliance (KEPSA), and the Kenya Revenue Authority (KRA).
The talks, held on July 30, 2026, focused on addressing persistent tax administration issues that have hindered private sector investment. Key topics included tax policy predictability, Value Added Tax (VAT) refunds, transfer pricing, the Alternative Dispute Resolution (ADR) mechanism, tax system reliability, and customs and border efficiency.
Strengthening Investor Confidence
Invest Kenya emphasized that the discussions are part of a wider government strategy to enhance collaboration between public institutions and the private sector. This approach aims to create a more transparent, predictable, and competitive business climate.
According to Invest Kenya, these engagements support the Ministry of Investments, Trade and Industry’s commitment to resolving investment barriers and positioning Kenya as a preferred destination for both local and foreign investors.
Tax Reforms and Compliance Incentives
In tandem with these talks, KRA continues to implement reforms to improve tax compliance and ease taxpayer burdens. Notably, KRA announced a 2026 Tax Amnesty Programme offering a 100% waiver on penalties and interest for taxpayers who settle outstanding principal tax liabilities by December 31, 2026.
The amnesty covers tax debts accrued on or before December 31, 2025, and is designed to assist businesses and individuals in regularizing their tax status.
Supporting Economic Growth and Regional Competitiveness
This latest collaboration highlights the government’s efforts to establish a stable tax framework that attracts investment and fosters economic growth. By tackling issues such as VAT refunds, customs efficiency, and dispute resolution, Kenya aims to boost investor confidence, facilitate trade, and enhance its standing as a leading regional investment hub.
