Finance Act 2020

Finance Act 2020


Related content

finance act

The Finance Act, 2020 (the Act) was passed by the National Assembly on 23 June 2020 and assented to by the President 30 June 2020. A departure from previous years that was necessitated by recent constitutional interpretations by the courts on the Provisional Collection of Taxes and Duties Act, CAP 415 of the Laws of Kenya that barred the Government from collecting taxes before the approval of the Finance Bill by the National Assembly, and the subsequent amendments to the Public Finance Management Act, 2012 requiring that the Finance Bill be enacted by 30 June of every financial year.

The Act comes hot on the heels of the Tax Laws (Amendment) Act, 2020 (TLAA) which introduced far reaching changes to the tax legislation in Kenya. On one hand, it builds on some implementation gaps under the TLAA such as on Value Added Tax exemption on supplies to projects under a special operating framework arrangements with the Government and capital gains on the transfer of machinery subject to capital allowance. On the other hand, it has introduced fundamentally different tax concepts in Kenya such as a minimum tax primarily targeting taxpayers in perpetual tax loss position, Digital Services Tax and a “go-and-sin-no-more” provision through the introduction of a Voluntary Tax Disclosure Programme that provides for a waiver of penalties and interests.


Please find the KPMG analysis of the Finance Act, 2020

© 2021 KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm ofthe KPMG global organization of independent member firms affiliated with KPMG InternationalLimited, a private English company limited by guarantee. All rights reserved. For more detail about the structure of the KPMG global organization please visit

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today