Thousands of graduates could soon find new opportunities as the Kenya Revenue Authority unveils a proposal designed to push employers to hire and train young talent.

At the centre of the plan is a draft regulation introducing a tax rebate for graduate apprenticeship programmes, an incentive that allows companies to offset part of their tax obligations against the cost of training fresh graduates. The move is aimed at easing the transition from school to work by making it more attractive for businesses to absorb young professionals.

The proposal forms part of a broader strategy to tackle youth unemployment by shifting some of the financial burden of training from employers through tax relief.

KRA is now inviting public participation before finalising the framework.

“Your voice matters! We want to hear from you before finalising the new Residential Rental Income Tax Regulations and the Graduate Apprenticeship Tax Rebate rules,” the authority said.

While the graduate-focused incentive has drawn attention for its potential to unlock jobs, KRA is also tightening its grip on rental income taxation.

In a notice dated April 29, 2026, the agency proposed amendments to the Draft Income Tax (Residential Rental Income Tax) Regulations, 2026, aimed at improving compliance among landlords.

Currently, landlords earning between Ksh288,000 and Ksh15 million annually are required to pay a 7.5 per cent tax on gross monthly rental income. However, KRA says gaps in enforcement have led to widespread under-declaration.

The proposed changes are expected to introduce stricter oversight, including enhanced digital tracking of rental income and better data matching systems to seal existing loopholes.

Kenyans have until May 25, 2026, to submit their feedback on both proposals via KRA’s stakeholder engagement platform.

With one policy targeting job creation and the other boosting tax compliance, the developments signal a dual push, supporting young graduates while tightening revenue collection.