Kenya’s Finance Act 2025, introduced a significant change to the corporate tax landscape by reinstating a five-year limit on the carry forward of tax losses, effective July 1, 2025. This marks a departure from the indefinite carry-forward regime introduced in 2021, and a return to the pre-2015 limit of five years, which was previously extended to ten years by the Finance Act, 2015. The 2015 law also allowed businesses to apply for an extension beyond 10 years, subject to approval by the Cabinet Secretary upon recommendation from the Commissioner. The reintroduction of the five-year cap in 2025 is part of a broader evolution in Kenya’s tax…