In December 2024, Kenya introduced the significant economic presence (SEP) tax and the minimum top-up tax under the Tax Laws Amendment Act to align with global tax standards, prevent profit shifting and tax base erosion.
These measures aim at ensuring that multinational corporations generating revenue in Kenya contribute to the local tax base, even without a physical presence. The move was considered crucial for Kenya given the rising digital economy, e-commerce, and cross-border services that have proved hard to tax.
