The Kenya Revenue Authority (KRA) has told large multinational groups operating in Kenya to confirm whether they are covered by the 15% Minimum Top-Up Tax (MTT). Its public notice, issued on 9 November 2026, sets a deadline of 30 November 2026. The tax has applied since 1 January 2025, but its detailed rules were only published in September, so this is the first real step in enforcing it.
What the tax is
Section 12G of the Income Tax Act, inserted by the Tax Laws (Amendment) Act, 2024, sets a floor of 15% on the effective tax rate of large groups’ Kenyan operations. If a group’s Kenyan profits end up taxed at less than 15% once incentives and adjustments are taken into account, its Kenyan entities pay the difference to KRA as a top-up.
This is Kenya’s version of the OECD global minimum tax, known as Pillar Two. Collecting the top-up locally means the tax is paid in Kenya rather than in the country where the group’s parent company sits. The Income Tax (Minimum Top-Up Tax) Regulations, 2026, published as Legal Notice No. 189 on 18 September 2026, set out how the tax is calculated and follow the OECD’s GloBE rules.
Who is covered
The tax applies to Kenyan resident companies and branches of a group whose consolidated turnover was at least EUR 750 million (about KSh 110 billion) in at least two of the previous four years. The test looks at the whole group, not the Kenyan entity, so a small Kenyan subsidiary of a large international group can be covered.
Some entities are excluded, including public bodies, pension funds, international organisations, and investment funds and real estate investment vehicles at the top of a group. Most Kenyan SMEs are not affected.
What KRA is asking for
Covered companies must:
- notify the Commissioner that they are in scope, giving the group name, the country of the ultimate parent company, and each Kenyan group entity with its KRA PIN, by email to mttsupport@kra.go.ke;
- file an MTT return and pay any top-up tax due; and
- comply with the international agreement under which tax authorities exchange GloBE information about multinational groups.
17 or 30 November?
KRA’s notice gives 30 November 2026. The Regulations, however, require covered companies to notify the Commissioner within 60 days of publication, which professional analyses of the Regulations put at 17 November 2026. KRA has not said whether its notice extends that date, so the safer course is to notify by 17 November. One group entity can notify on behalf of all the group’s Kenyan entities.
Key dates
| Step | When |
|---|---|
| Tax applies | Years of income beginning on or after 1 January 2025 |
| Notify the Commissioner | 17 November 2026 (Regulations); 30 November 2026 (KRA notice) |
| Pay the top-up tax | By the end of the fourth month after the year end (30 April for a December year end) |
| File the MTT return | By the end of the sixth month after the year end (30 June for a December year end) |
| GloBE Information Return | 18 months after the first year end, then 15 months; not needed in Kenya if the parent files it in a country that shares the information |
Why a 30% tax rate can still fall below 15%
Kenya’s headline corporate tax rate is 30%, but a group’s effective rate can fall well below that once tax holidays, export processing zone and special economic zone rates, investment deductions and capital allowances are counted. The calculation also uses accounting profits adjusted under the GloBE rules, not taxable income as KRA normally computes it.
Two features reduce the top-up. A share of payroll costs and tangible assets is carved out of the profits that can be topped up: 9.6% and 7.6% for 2025, tapering to 5% each from 2033. And for years starting before 1 July 2029, a group can avoid the full calculation if its country-by-country report shows it meets simplified tests, such as an effective rate of at least 16% for 2025 or 17% for 2026. Kenya does not allow the OECD’s exclusion for small amounts of profit and revenue.
What to do now
- Check the threshold. Confirm the group’s consolidated turnover for the last four years with the group tax team.
- Notify early. List every Kenyan entity and its PIN, agree which entity will notify for the group, and email KRA by 17 November.
- Work out the Kenyan effective rate for 2025 and 2026, and check whether a safe harbour applies.
- Review 2025. For December year ends, the 2025 payment date (30 April 2026) and return date (30 June 2026) passed before the Regulations were published. Groups that may owe a top-up for 2025 should take advice on bringing it up to date.
Sources: KRA public notice, Compliance with Section 12G of the Income Tax Act (Cap. 470) and the Income Tax (Minimum Top-Up Tax) Regulations, 2026, 9 November 2026 · Income Tax (Minimum Top-Up Tax) Regulations, 2026, Legal Notice No. 189 of 2026 · KPMG Kenya and RSM Eastern Africa analyses of the Regulations · EY tax alerts on Kenya’s minimum top-up tax (March and August 2025) · The Standard, 9 November 2026.