In force 🚨 Action required Update
Kenya — Bad debt refund three years
This page records one dated change. For the rules in Kenya as they stand today, see the Kenya guide →
- Jurisdiction
- Kenya
- Tax
- VAT
- Change type
- Update
- Status
- In force
- Impact
- Action required
- Effective
- 1 July 2026
- Instrument
- KE-FINACT-19-2026
- Systems
- Tax engine, ERP, Reporting
- Verified
- Corroborated against official id · medium confidence
Update VAT bad-debt relief workflows to require a three-year minimum qualifying period before claiming a refund on a bad debt in Kenya.
Tax engineERPReporting
Kenya’s Finance Act, 2026 amends section 31(1) of the VAT Act, CAP 476, reverting the minimum qualifying period for a VAT refund on bad debts from two years to three years, restoring the position that applied before the Finance Act 2025 introduced the two-year period.