MGK Consulting

𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐀𝐜𝐭 𝟐𝟎𝟐𝟔 𝐔𝐩𝐝𝐚𝐭𝐞

Did you know the Finance Act, 2026 has changed how VAT applies to labour outsourcing services?

If your business outsources staff such as security personnel, cleaners, payroll administrators, or IT support, this update may affect how VAT is charged.

The new law clarifies that employee-related costs (including salaries and statutory deductions) are not subject to VAT as part of the outsourced service. Instead, VAT applies only to the outsourcing company's service fee.

Now is a good time to:
✔ Review your outsourcing contracts
✔ Update accounting and ERP systems
✔ Confirm your VAT treatment is correct

Keeping up with tax changes today helps avoid compliance issues tomorrow.

𝐒𝐨𝐮𝐫𝐜𝐞: Finance Act, 2026.

𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐀𝐜𝐭 𝟐𝟎𝟐𝟔 𝐔𝐩𝐝𝐚𝐭𝐞

The Finance Act, 2026 has introduced changes to the VAT Act that may affect how some businesses account for VAT from 1 July 2026.

This is a good time to:

✔ Review the VAT treatment of your products and services

✔ Update your accounting or ERP system

✔ Check whether your pricing or contracts may be affected

✔ Ensure your finance team understands the new requirements

Staying informed helps businesses remain compliant and avoid unnecessary tax risks.

𝐒𝐨𝐮𝐫𝐜𝐞: Finance Act, 2026.

Need guidance? The MGK Consulting tax team is here to help.

𝐊𝐑𝐀 𝐏𝐮𝐛𝐥𝐢𝐜 𝐍𝐨𝐭𝐢𝐜𝐞 𝐔𝐩𝐝𝐚𝐭𝐞

The Kenya Revenue Authority (KRA) has issued 𝐏𝐮𝐛𝐥𝐢𝐜 𝐍𝐨𝐭𝐢𝐜𝐞 𝐍𝐨. 𝟐𝟑𝟕𝟔 announcing the removal of excise duty on bottled water manufactured or imported from 𝟏 𝐉𝐮𝐥𝐲 𝟐𝟎𝟐𝟔, in line with the Finance Act, 2026.

The notice also reminds taxpayers that:
✔ Excise duty obligations up to 30 June 2026 remain payable.
✔ June 2026 excise returns are due by 𝟐𝟎 𝐉𝐮𝐥𝐲 𝟐𝟎𝟐𝟔.

If your business manufactures, imports, or distributes bottled water, now is a good time to review your pricing, accounting records, inventory, and compliance processes.

At MGK Consulting, we continue to keep businesses informed of important regulatory developments that may affect their operations.

📌 Source: Kenya Revenue Authority (KRA) Public Notice No. 2376.

We're now in the second half of the year.

July is an ideal time to step back and evaluate where your business stands. Are your financial goals on track? Do you have clear visibility into your cash flow and performance? Are your current strategies still aligned with your objectives?

A mid-year review can help you identify opportunities, address challenges early, and make informed decisions for the months ahead.

At MGK Consult, we believe that strong financial insight is the foundation of sustainable business growth.

What is your top business priority for the second half of the year?

⏰ Final Reminder!

Tomorrow (30 June) is the deadline for filing your 2025 Income Tax Return.

Whether you're an individual or a business with a December year-end, ensure your return is submitted on time to avoid penalties and interest.

Take a few moments today to:
✔ Confirm your information
✔ Complete your return
✔ Submit it through iTax before the deadline

Need professional assistance? The MGK Consulting team is here to help.

Every contribution made to a not-for-profit organisation carries a responsibility to use resources wisely and report them accurately.

Strong financial management helps organisations:

✔ Improve accountability
✔ Strengthen donor confidence
✔ Produce accurate financial reports
✔ Support better programme planning
✔ Enhance organisational sustainability

When financial information is clear and reliable, organisations can focus more on delivering impact and less on resolving reporting challenges.

A project can be delivered on time and still fail financially.

In the real estate and construction sector, understanding project costs, cash flow, and profitability is just as important as meeting project milestones.

Strong financial management helps organisations:
✔ Monitor project performance
✔ Control costs
✔ Improve cash flow planning
✔ Make informed business decisions

The earlier financial insights are available, the easier it becomes to address issues before they affect profitability.

Today, we celebrate the fathers, mentors, and role models whose dedication, sacrifice, and guidance help shape strong families, thriving communities, and brighter futures.

Behind every success story is often a father who worked hard, planned ahead, and never gave up on those who depend on him.

To all fathers and father figures, thank you for your strength, commitment, and unwavering support.

Happy Father's Day from all of us at MGK Consult.

𝐈𝐬 𝐛𝐨𝐨𝐤𝐤𝐞𝐞𝐩𝐢𝐧𝐠 𝐭𝐚𝐤𝐢𝐧𝐠 𝐦𝐨𝐫𝐞 𝐭𝐢𝐦𝐞 𝐭𝐡𝐚𝐧 𝐢𝐭 𝐬𝐡𝐨𝐮𝐥𝐝?

Many businesses struggle to keep financial records accurate and up to date while balancing day-to-day operations. Unfortunately, delayed bookkeeping can lead to reporting errors, compliance risks, and missed business insights.

Here are a few practical ways to make bookkeeping easier:

✅ Record transactions regularly instead of waiting until month-end

✅ Separate business and personal finances

✅ Use accounting software to automate repetitive tasks

✅ Keep supporting documents organised and accessible

✅ Establish a consistent bookkeeping schedule

𝐃𝐨𝐧'𝐭 𝐨𝐯𝐞𝐫𝐥𝐨𝐨𝐤 𝐫𝐞𝐜𝐨𝐧𝐜𝐢𝐥𝐢𝐚𝐭𝐢𝐨𝐧𝐬 𝐞𝐢𝐭𝐡𝐞𝐫.

Regularly reconciling your bank accounts helps identify discrepancies early, maintain accurate records, and improve confidence in your financial reporting.

Strong bookkeeping and reconciliations are not just accounting tasks. They are the foundation of better business decisions and sustainable growth.

What bookkeeping challenge does your business face most often?