Tax Alert: Kenya Gazettes Minimum Top-Up Tax Regulations

Kenya’s Minimum Top-Up Tax regulations are now in force. The Cabinet Secretary for the National Treasury has gazetted the Income Tax (Minimum Top-Up Tax) Regulations, 2026 (Legal Notice No. 189), providing clear guidance on the implementation of the MTT under section 12G of the Income Tax Act.

MTT applies to Kenyan constituent entities and permanent establishments of multinational groups with consolidated annual revenue of at least EUR 750 million in at least two of the four preceding financial years. It is triggered where the combined effective tax rate of covered persons in Kenya falls below 15% under the GloBE rules. Payment of corporation tax at the 30% statutory rate does not eliminate potential exposure. Where multiple covered persons exist in Kenya, the tax is computed on a combined basis and allocated according to net income after the substance-based income exclusion.

Covered persons must notify the KRA of their MTT status by 30 November 2026 through mttsupport@kra.go.ke. MTT returns are due by the last day of the sixth month after the year of income, while the GloBE Information Return is due within 18 months of the first affected year and 15 months thereafter. Download our full Tax Alert for a complete analysis of the Regulations and key compliance requirements. PKF is ready to assist with assessing your exposure, reviewing the rules, and supporting computations and filings.