The Finance Act, 2026 has amended Part II of the first Schedule of the VAT Act to include sale of repossessed collateral arising from enforcement of security for loans as an exempt item.
By
Julians Amboko
Contributor
Nation Media Group
Banks and other lenders including saccos will now be spared imposition of Value Added Tax (VAT) on sale of repossessed collateral from defaulting borrowers, marking a major win for lenders in a long drawn fight with the Kenya Revenue Authority (KRA).
Finance Act changes on Bank of Tanzania borrowing spark repayment debate
Tax relief offered as government revises the Finance Bill 2026
Parliament's tax verdict: What to expect from the proposed law
KRA rules out extension of June 30 deadline to file tax returns
Treasury's quest for expanded KRA enforcement role hits legislative wall
KRA has agency notices, a directive issued by the taxman under Section 42 of the Tax Procedures Act, compelling a third party,…
This follows the reduction of VAT on fuel from 16 per cent to eight per cent as part of measures aimed at cushioning consumers…
KRA is set to assume unprecedented powers that critics say will make it judge, jury, and executioner in tax disputes.
KRA had argued that discrepancies between import records, VAT returns, and financial statements justified additional tax…
The Finance Bill has proposed expanding the definition of management fees, professional fees and merchant service fees arising…
The High Court rejected claims of excessive interest charges and undervaluation of assets, clearing the way for Equity Bank to…
