Kenya — PPP infrastructure exemptions
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
Identify qualifying public-private partnership projects, National Infrastructure Fund projects and projects with investment of at least KES 3 billion, obtain the required Cabinet Secretary approvals, and apply the VAT exemption to qualifying supplies.
Tax engineERPReporting
Kenya’s Finance Act, 2026 introduces new VAT exemptions in the First Schedule to the VAT Act, CAP 476: goods for direct and exclusive use in infrastructure projects under a public-private partnership framework, on Cabinet Secretary approval; goods for direct and exclusive use in infrastructure projects undertaken and funded by the National Infrastructure Fund, on National Treasury Cabinet Secretary approval; and plant, machinery, equipment and spare parts imported or purchased locally for a project with a total investment value of at least KES 3 billion, on approval by the Cabinet Secretaries for the National Treasury and for Trade and Investment Promotion. A related exemption covers services for direct and exclusive use in public-private partnership infrastructure projects. The specific First Schedule paragraph numbers reported for these exemptions rest on a single advisory source and are not stated here.