President William Ruto announced an increase in the duty-free allowance for returning travellers, raising the limit from Ksh. 39,000 to Ksh. 260,000. He said the change will help address concerns raised by Kenyans living and working abroad and by other visitors.
Speaking on Tuesday after he assented to the Finance Bill, 2026, at State House in Nairobi, Ruto said the revised threshold would allow travellers to bring back more gifts and personal items without paying duty charges.
“To address concerns raised by returning travellers, including Kenyans who travel abroad and members of the diaspora, we have increased the duty-free allowance from Ksh.39,000 to Ksh.260,000 for gifts and personal effects that Kenyans can buy as they travel or as they come home from their jobs abroad,” Ruto said.
The increase marks a rise of more than six times the previous duty-free allowance and is expected to benefit Kenyans returning from overseas employment, members of the diaspora, and other travellers bringing personal goods into the country.
The announcement followed measures contained in the Finance Bill, 2026, which President William Ruto signed into law on Tuesday. The National Assembly passed the bill last week with amendments, after which lawmakers transmitted it to the president for assent before it took effect.
Ruto also assented to the Appropriation Bill, saying the two laws provide the legal framework and funding needed to drive Kenya’s transformation priorities. He said the measures aim to create jobs, strengthen livelihoods, and expand programmes and projects under the Bottom-Up Economic Transformation Agenda.
“The vision is clear, the agenda is set, the plan is funded and on course, the transformation is happening and, together, we are building the prosperous, inclusive and modern nation that we all deserve,” he said.
The president cautioned Kenyans against propaganda and misinformation about the Finance Act, 2026, which he said the opposition promoted to pursue political goals. He urged the public to reject propaganda, fake news, hate, ethnic bigotry, and other forms of division.
Ruto added that the Finance Act does not introduce taxes that burden ordinary citizens. Instead, he said it improves fairness by strengthening compliance, closing loopholes and ensuring that every individual and business pays what the law requires.
“We are pursuing tax avoidance, not taxpayers; offshore schemes, not ordinary wages; and leakages, not livelihoods,” he said.
He also dismissed claims made through misinformation, noting that the law does not levy taxes on freehold land, does not tax mitumba, and does not change rental income tax. He further stated that it includes no tax on bottled water and imposes no new charges on M-Pesa or mobile money transactions, mobile phones, airtime or data, and locally manufactured packaging.
Ruto said the Finance law supports livelihoods by providing incentives for motorcycles, electric buses and bicycles, solar batteries, and locally assembled mobile phones.
