Nairobi, July 1 -- 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.

Together, they show Parliament's power to reshape the tax landscape even after courts have spoken.

In December 2025, the Supreme Court delivered its judgment in Barclays Bank of Kenya (Absa) v Commissioner for Domestic Taxes.

The dispute over taxation of card transactions is among Kenya's longest-running tax battles.

It began over 15 years ago when the Kenya Revenue Authority (KRA) demanded WHT from Barclays Bank (now Absa Bank) on interchange fees and payments made to international card comp...