Big relief for travellers as Ruto raises duty-free cap from Sh39,000 to Sh260,000

President William Ruto speaks during the signing of the Finance Bill 2026/2027 at State House, Nairobi / PCS

The government has increased the duty-free allowance for returning travellers from Sh39,000 to Sh260,000, a move expected to benefit Kenyans living and working abroad as well as citizens returning home from overseas trips.

President William Ruto announced the change on Tuesday while assenting to the Finance Bill 2026/2027, saying the decision was intended to address concerns raised by travellers and members of the diaspora.

The revised allowance means travellers entering the country will be able to bring in personal effects and gifts worth up to Sh260,000 without paying customs duty, a significant increase from the previous threshold of Sh39,000.

“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 Sh39,000 to Sh260,000 for gifts and personal effects that Kenyans can buy as they travel or as they come home from their jobs abroad,” Ruto said.

The move is expected to ease the tax burden on Kenyans returning from abroad, particularly diaspora workers who often carry gifts and personal items for their families when travelling home.

The increase forms part of the measures contained in the Finance Bill 2026/2027, which the President said are intended to address concerns raised by various groups while supporting economic activity and improving citizens' welfare.

Ruto on Tuesday signed the Finance Bill 2026 into law at State House, Nairobi, paving the way for the implementation of a raft of tax and revenue measures contained in the legislation.

The signing ceremony was attended by senior government officials, including National Treasury representatives and lawmakers who spearheaded the Bill's passage through Parliament.

Speaking during the event, Ruto said the new law was the product of extensive public engagement and was designed to enhance fairness in tax administration without imposing new burdens on ordinary Kenyans.

“Before the passage of the Bill, Parliament conducted extensive public participation and opened digital platforms for Kenyans to share their views and suggestions. This law does not raise taxes on ordinary Kenyans; instead, it improves fairness by strengthening compliance, closing loopholes, and ensuring that every person and business pays what is lawfully due,” he said.

The President said the enactment of the Finance Act and the Appropriation Act equips the government with the resources needed to implement its development priorities.

“With my assent to the Finance Bill, Kenya now has both the legal framework and the resources to finance its priorities, create jobs, strengthen livelihoods and invest in the future under the Bottom-Up Economic Transformation Agenda,” Ruto said.

He added that the national budget is more than a statement of revenues and expenditures.