Kenya — Input VAT security services
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
Allow full deduction of input VAT directly attributable to supplies to the Kenya Defence Forces, DEFWES, the National Intelligence Service and the National Police Service, without apportionment, subject to Commissioner-prescribed documentation.
Tax engineERPReporting
Kenya’s Finance Act, 2026 amends section 17 of the VAT Act, CAP 476 to allow registered persons to deduct input VAT directly attributable to supplies made to the Kenya Defence Forces, the Defence Forces Welfare Services, the National Intelligence Service and the National Police Service, where those supplies are exempt under paragraphs 57 and 101 of the First Schedule. Such input VAT was previously irrecoverable. A new subsection provides that this input tax is not subject to apportionment where it is wholly attributable to those supplies.