Kenya gazettes Minimum Top-Up Tax Regulations, 2026

Kenya has gazetted the Income Tax (Minimum Top Up Tax) Regulations, 2026 (Legal Notice No. 189). They bring section 12G of the Income Tax Act into force and set out the rules for Kenya's minimum top-up tax. The first deadline for affected groups is only weeks away.

Who is affected?

The Regulations apply to Kenyan-resident entities and permanent establishments that belong to a multinational group with consolidated annual revenue of EUR 750 million or more in at least two of the four preceding financial years. They cover years of income starting on or after 1 January 2025.

The threshold is tested on the group's consolidated financial statements, so a Kenyan subsidiary or branch with modest local revenue can still be in scope. Being in scope does not automatically mean tax is payable. That depends on the effective tax rate, any applicable exclusions and any available safe harbour.

What you need to know now

• Notify KRA by 17 November 2026. Covered persons must notify the Commissioner within 60 days of publication. KRA has yet to confirm how to submit the notification, but the deadline still applies.
• Payment and Kenyan return. Top-up tax is due by the end of the fourth month after the year end, and the Kenyan return by the end of the sixth month.
• GloBE Information Return (GIR). The first GIR is due within 18 months of the end of the first year in scope. Kenya is not yet listed as a signatory to the GIR Multilateral Competent Authority Agreement (GIR-MCAA), so groups should plan for a possible Kenyan GIR filing.
• Safe harbours. The Transitional Country-by-Country Reporting (CbCR) Safe Harbour is available for years of income starting before 1 July 2029, but Kenya will not apply the de minimis test.

What should groups do?

Confirm scope and exclusions, prepare the notification, review 2025 compliance, plan GIR filing with the group's head-office tax team, assess safe-harbour eligibility and keep the records that support each position.

Our full tax alert covers the excluded entities, a deadline table for groups with a calendar financial year, the safe-harbour tests in Kenya and a six-step action plan.