Kenya Finance Act 2025 Signed Into Law Including Deduction for Small Businesses, Digital Assets Tax Reduction, and Provision on Minimum Top-up Tax Payment

On 26 June 2025, Kenyan President William Ruto signed the Finance Act 2025 into law. The main tax measures:

• Allow a full cost deduction in the first year of purchase for loose items such as utensils, linen, and industrial tools, instead of the current three years;
• Empower the Commissioner to enter into Advance Pricing Agreements with multinational companies to reduce tax disputes from cross-border transactions;
• Clarify that the due date for payment of the Minimum Top-Up Tax is the end of the…