Kenyans challenging tax decisions may soon face tighter deadlines if proposals contained in the Finance Bill 2026 are approved by Parliament.
The National Treasury is seeking to amend Section 77(2) on the computation of time for filing tax objections and appeals by removing the provision that excludes weekends and public holidays when counting timelines.
If the proposal becomes law, all deadlines for lodging tax complaints and appeals will be calculated using calendar days, a move that tax experts say could leave taxpayers with less time to prepare their cases.
PricewaterhouseCoopers (PwC) has raised concerns over the proposed changes, warning that the amendment could disadvantage taxpayers, especially where deadlines fall near weekends or public holidays.
According to the advisory firm, the changes may increase the risk of taxpayers missing statutory deadlines, particularly in complex disputes that require internal approvals, gathering of documents or consultation with advisers.
“This increases administrative and cash-flow pressure on taxpayers involved in complex disputes, where internal approvals, collation of documentation or engagement of advisers is required within already tight statutory windows,” stated PwC analysts.
The firm further warned that disputes could end up being decided on procedural grounds rather than the actual merits of the case.
PwC noted that this is the second attempt to introduce such changes after a similar proposal failed under the Finance Act 2024.
“The reintroduction of the same proposal in the Finance Bill, 2026, represents a renewed attempt to reverse a recently enacted procedural safeguard, raising concerns around certainty and stability in tax dispute-resolution rules,” the advisory stated.
The Finance Bill 2026 also proposes amendments to Section 86 relating to non-compliance with the electronic tax system.
Under the proposals, the Commissioner would have powers to impose a fine of Ksh100,000 or twice the amount of tax due where a taxpayer fails to issue an electronic receipt and the explanation given is considered unsatisfactory.
However, PwC cautioned that the proposed penalties could expose businesses and taxpayers to heavy financial consequences even in cases involving minor mistakes or technical failures.
“The introduction of minimum absolute penalties, particularly the Ksh.100,000 floor for non-individuals, may significantly increase exposure for taxpayers in cases of minor non-compliance or technical system failures where little or no tax is ultimately at risk,” the analysts stated.
The proposed changes are part of wider tax reforms contained in the Finance Bill 2026, which is expected to undergo parliamentary scrutiny before lawmakers decide whether to approve or amend the measures.
