Ruto Assents THREE Major Bills To Law, Targets Reform & Investment Boost
Companies have been handed some reprieve after President William Ruto assented to the Income Tax (Amendment) Bill, which introduces new changes aimed at easing the cost of doing business in the country.
The Income Tax (Amendment) Bill was one of three bills the president signed into law on Monday, May 11.
The government continues to advance economic reforms aimed at boosting investment, improving the business environment and driving national development.
The bill, sponsored by Molo Member of Parliament Kuria Kimani, is aimed at easing how companies reorganise ownership structures and move assets within corporate groups without triggering tax penalties.
We are streamlining our laws to strengthen Kenya’s position as an attractive investment destination by creating a more efficient, predictable, and competitive business environment.
— William Samoei Ruto, PhD (@WilliamsRuto) May 11, 2026
Assented to the Income Tax Bill, the Special Economic Zones (Amendment) Bill, and the Technopolis… pic.twitter.com/QQliG273IG
Previously, when companies transferred value to shareholders, the Kenya Revenue Authority (KRA) treated it as a taxable dividend and therefore triggered withholding tax.
Under the new law, transfers of property by a company to its shareholders as part of an internal restructuring will no longer be treated as taxable distributions.
The exemption applies only where assets are distributed in proportion to existing shareholding, and where any share transfers relate to subsidiaries within the same firm.
The law now addresses Capital Gains Tax (CGT), a tax on profits from the sale of assets for non-resident vendors, and strengthens Kenya Revenue Authority (KRA) registration requirements for foreign investors.
With the bill now a law and taking effect from the next financial year from July 1, the government aims to attract investment and private equity.
Presidential Assent of Three National Assembly Bills – Income Tax (Amendments) Bill, Special Economic Zones (Amendments) Bill and Technopolis Bill https://t.co/hc8VIi2XP5
— William Samoei Ruto, PhD (@WilliamsRuto) May 11, 2026
By removing CGT, Kenya now positions itself as an investor-friendly nation.
Other Bills Signed into Law
Besides the Income Tax (Amendment) Bill, Ruto also assented to the Special Economic Zones (Amendments) Bill and the Technopolis Bill.
The Special Economic Zones Bill sought to strengthen the Special Economic Zones framework to support large-scale capital investments.
Specifically, the law targets upstream and midstream petroleum and energy operations, including the South Lokichar Basin in Turkana.
The law, now taking effect immediately, introduces a mandatory 10-year minimum license for petroleum zone operators to ensure security of tenure for investors.
The law also removes the 10-year cap on withholding tax exemptions for royalties and management fees and amends the VAT Act to zero-rate supplies to Special Economic Zone operators.
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On the other hand, the Technopolis bill sought the establishment, administration, and management of the Konza Technopolis.
This bill took the longest route to assent, as it was introduced in April 2024 before being passed in the National Assembly on November 19 2024.
Since it deals with land and county matters, it was subject to a review by the Senate, and amendments were passed on November 12 2025.
The law now will see the creation of an authority to oversee the city and the establishment of the Technopolis Dispute Resolution Tribunal.
It also outlines a regulatory framework for technology parks, including incentives and penalties.
Ruto Assents THREE Major Bills To Law, Targets Reform & Investment Boost
