Kenya’s Finance Act 2026 adds 16% VAT to digital payment service fees
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Banks and fintech companies in Kenya must apply a 16% VAT to certain fees starting November 1, 2026. This tax applies to electronic payment processing, settlement, and gateway services. These changes are part of the Finance Act 2026. The new measure will increase costs for merchants. It may also lead to higher costs for consumers.
Effective 1 November 2026, banks and fintechs must apply a 16% VAT to fees for electronic payment processing, settlement and gateway services, raising costs for merchants and potentially consumers.