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Finance Act 2026 and a tale of two tax decisions

Interchange fees are now expressly classified as management or professional fees, while payments to card companies are deemed royalties. Both will now be subject to WHT.

Photo credit: Shutterstock

By  SAMUEL MAINA

The Finance Act, 2026 has introduced two significant tax changes that directly overturn recent court decisions in Kenya.

The changes affect the withholding tax (WHT) treatment of card transactions and VAT on outsourced labour.

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Note: The results are not exact but very close to the actual.

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