The Kenya Revenue Authority (KRA) has directed multinational companies covered by the Minimum Top-Up Tax regime to disclose their corporate group structures by November 30, 2026, as the government steps up enforcement of the new tax framework.
In a public notice issued on Monday, November 9, KRA instructed affected taxpayers, known as covered persons, to notify the Commissioner that they fall within the scope of the Minimum Top-Up Tax (MTT).
The notification must contain the name of the multinational group, the country where its ultimate parent entity is based, and a list of all constituent entities operating in Kenya, together with their respective Personal Identification Numbers (PINs).
KRA directed the affected entities to submit the information through the email address mttsupport@kra.go.ke before the November 30 deadline.
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The authority also reminded covered taxpayers that they must file returns declaring their Minimum Top-Up Tax obligations and pay any additional tax due under the law.
In addition, the companies are required to comply with the Multilateral Competent Authority Agreement on the Exchange of GloBE Information, which provides a framework for sharing tax information between participating jurisdictions.
Which Companies Are Affected?
The Minimum Top-Up Tax regime targets resident companies and permanent establishments in Kenya that belong to qualifying multinational enterprise groups.
To fall within the scope, a multinational group must have consolidated annual revenue of at least €750 million in at least two of the four financial years immediately preceding the year being assessed.
The requirement is based on the consolidated financial statements of the group's ultimate parent entity.
Public entities that do not engage in business activities are among the entities excluded from the regime.
The November 30 notification requirement is therefore not a general directive to every business operating in Kenya. It applies to taxpayers who meet the legal conditions for coverage under the MTT framework.
How the 15 Per Cent Minimum Tax Works
The Minimum Top-Up Tax is designed to ensure that qualifying multinational groups pay an effective tax rate of at least 15 per cent on their profits attributable to Kenya under the applicable rules.
Where the calculated effective tax rate falls below the 15 per cent threshold, an additional tax may be payable to make up the difference.
For instance, if a qualifying group's effective tax rate in Kenya is calculated at 12 per cent, the top-up mechanism is intended to bridge the three-percentage-point gap to the minimum rate.
The calculation is governed by specific rules on income, covered taxes and applicable adjustments. It is therefore not simply a comparison of a company's headline corporate income tax rate with the 15 per cent threshold.
Kenya's standard corporate income tax rate is generally 30 per cent, but tax incentives, deductions and exemptions can affect the effective tax burden of qualifying multinational groups.
Such incentives may include benefits available under Special Economic Zones (SEZs) and Export Processing Zones (EPZs), as well as investment allowances and other tax deductions.
Legal Framework Behind the Tax
Kenya introduced the Minimum Top-Up Tax through Section 12G of the Income Tax Act under the Tax Laws (Amendment) Act, 2024.
The government subsequently operationalised the provision through the Income Tax (Minimum Top-Up Tax) Regulations, 2026, published under Legal Notice No. 189 on September 18, 2026.
The regime applies to years of income beginning on or after January 1, 2025.
The regulations provide guidance on the administration of the tax, including how qualifying groups calculate their effective tax rates and determine any additional tax payable.
Kenya Aligns with Global Minimum Tax Rules
The introduction of the Minimum Top-Up Tax also aligns Kenya with the Organisation for Economic Co-operation and Development's (OECD) Global Anti-Base Erosion (GloBE) framework, commonly known as Pillar Two.
The international framework seeks to limit profit shifting by large multinational companies to jurisdictions where they may face lower tax rates.
By introducing a minimum effective tax rate of 15 per cent, participating countries aim to ensure that large corporate groups make a minimum contribution in the jurisdictions where they operate.
KRA has urged all taxpayers falling within the scope of the regulations to meet the notification, filing and payment requirements.
Companies seeking clarification on the new regime have been directed to contact the authority through mttsupport@kra.go.ke.