Finance Act 2026: Why Software and Cloud Bills Could Become More Expensive

Cloud tools feel invisible until the invoice arrives. The Finance Act 2026 makes those invoices more important because software, support, training, maintenance, and some processing fees may now be treated more broadly under royalty rules.

For Kenyan SMEs, this could affect everyday tools: accounting platforms, productivity subscriptions, developer services, card processors, analytics suites, and SaaS products paid to foreign vendors.

The practical response is not panic. It is cost visibility. Businesses should list every recurring software payment, identify foreign vendors, check whether withholding tax applies, and compare annual contract options against monthly billing.

For local software builders, there is also an opportunity. If foreign SaaS becomes more expensive, Kenyan alternatives with local support, local billing, and clear tax handling may become more attractive.

References

• Techweez: Finance Act 2026 Increases Software and Cloud Costs by 25%