July 2026 Africa Regulatory Updates Round-Up

July 2026 has seen several important regulatory developments across Africa. Governments have introduced new tax legislation, employment regulations and business compliance measures that could affect employers, payroll teams and multinational organisations.

To help you stay ahead of these changes, our experts have compiled a selection of the month's key regulatory updates and what they could mean for businesses operating across the continent.

Missed last month's Regulatory Updates Round-Up? Click to discover the June updates.

Botswana: Income Tax Act

Botswana's re-enacted Income Tax Act came into effect on 1 July 2026, introducing wide-ranging reforms affecting both individual and corporate taxpayers. The legislation updates rules on:

• Employment income
• Capital gains tax
• Partnerships
• Corporate residence
• Deductible expenses
• Assessed losses

At the same time, the legislation also strengthens the country's international tax framework through new provisions on transfer pricing, exchange of information and dispute resolution.

Likely impact

Businesses operating in Botswana should review their corporate tax position, transfer pricing policies and tax reporting processes to ensure compliance with the new framework.

Multinational groups may need to reassess cross-border structures and documentation, while payroll and finance teams should familiarise themselves with the updated rules affecting employment income and tax administration.

Botswana: Tax Administration Act

A new Tax Administration Act took effect on 1 July 2026, creating a unified administrative framework for Botswana's tax system.

The Act introduces binding tax rulings, regulates tax agents, establishes a Tax Tribunal, launches a voluntary disclosure programme and standardises key compliance deadlines, including VAT returns, withholding tax payments and record retention requirements.

Likely impact

The Act provides greater certainty for taxpayers while strengthening tax administration and enforcement.

Businesses should review their compliance calendars, update record-keeping practices and ensure internal tax processes align with the new filing deadlines and administrative requirements.

Democratic Republic of Congo: Local Content Law

The Democratic Republic of Congo has published a new Local Content Law.

It establishes a comprehensive legal framework to promote greater participation by Congolese businesses and workers across key industries. The legislation requires companies to prepare three-year local content plans, meet employment quotas and sector-specific ownership requirements, reserve at least 51% of public procurement contracts for Congolese companies and comply with new reporting obligations.

The law will be implemented through a six-month transition period.

Likely impact

Companies operating in the DRC, particularly in regulated sectors, should begin reviewing their workforce composition, procurement strategies and ownership structures.

Employers may need to develop local recruitment plans, strengthen supplier networks and prepare for additional reporting and compliance obligations before the transition period ends.

Kenya: Finance Act 2026

Kenya's Finance Act 2026 has entered into force, introducing amendments across:

• Income tax
• VAT
• Excise duty
• Stamp duty
• Tax administration

The changes affect employers, businesses and taxpayers through updated tax rules, revised compliance obligations and changes to the administration of the country's tax system.

Likely impact

Employers should assess whether the new tax measures affect payroll calculations, withholding obligations or employee benefits.

Finance teams should also review VAT, corporate tax and compliance processes to ensure systems and procedures reflect the updated legislation.

Kenya: Regulation of Wages (Amendment) Order

Kenya has amended the Regulation of Wages (General) Order. This amendment increases statutory minimum monthly, daily and hourly wage rates across a wide range of occupations.

Although the Order was published on 29 June 2026, the revised minimum wages are deemed to apply retrospectively from 1 May 2026, requiring employers to ensure payroll compliance.

Likely impact

Employers should review salary structures to ensure employees are paid at least the revised statutory minimum wage.

Organisations may also need to calculate and settle any back pay owed from 1 May 2026 and update payroll systems to reflect the new rates.

Kenya: Central Bank of Kenya (Amendment) Act

The Central Bank of Kenya (Amendment) Act 2026 has entered into force. It establishes a formal legal framework for Emergency Liquidity Assistance to financial institutions.

The legislation also expands the Central Bank's supervisory powers and introduces new provisions relating to the regulation of precious metals.

Likely impact

While the legislation primarily affects banks and financial institutions, it is expected to strengthen financial sector stability and regulatory oversight.

Businesses operating in the financial services sector should review the new requirements and assess any implications for governance, liquidity management and regulatory compliance.

Mauritius: Labour Contractor Regulations

Mauritius has approved the Workers' Rights (Labour Contractor) (Agricultural Sector) Regulations 2026.

This new regulation creates a regulatory framework for labour contractors supplying migrant workers to the agricultural sector.

The regulations clarify employer responsibilities, require workers to perform only the duties set out in their employment contracts and ensure that migrant workers receive wages in accordance with the applicable remuneration regulations.

Likely impact

To ensure compliance once the regulations are promulgated, agricultural employers and labour contractors should review their:

• Recruitment practices
• Employment contracts
• Wages

Organisations relying on migrant labour may also need to strengthen oversight of contractor compliance and worker protections.

Mauritius: Certificate of Character Regulations

The Certificate of Character Regulations 2026 came into effect on 1 July 2026, establishing the procedures for obtaining certificates of character by individuals and employers.

The regulations also limit how frequently employers can request new certificates. At the same time, they require workers to disclose any criminal convictions received after a certificate has been issued.

Likely impact

Employers should review recruitment and background screening policies to ensure they comply with the new rules governing certificate requests.

HR teams should also update onboarding procedures. These should reflect the restrictions on repeat requests and the ongoing disclosure obligations placed on employees.

 

Mozambique: Labour Court

Mozambique's new Labour Court for Nampula Province was officially operational as from 29 June 2026.

All pending labour disputes previously handled by the provincial judicial court have been transferred to the new specialist court, with the aim of improving the handling of employment-related cases.

Likely impact

Employers with operations in Nampula may experience changes in how labour disputes are managed. This includes revised procedures and potentially more specialised handling of employment cases.

Organisations involved in ongoing litigation should monitor any procedural requirements associated with the transfer of cases.

Zambia: Mental Health (Amendment) Act

Zambia has promulgated the Mental Health (Amendment) Act 2026, introducing governance reforms for the National Mental Health Council. The amendments revise the composition of the Council, broaden stakeholder representation and reduce the quorum required for board meetings. The Act will come into operation once the current Board members complete their terms of office or are removed by the Minister of Health.

Likely impact

The immediate impact on employers is expected to be limited, as the amendments focus on governance rather than workplace obligations. However, organisations operating in the healthcare sector or those involved in mental health services should monitor the Act's commencement and any future policy or regulatory changes that may follow.

Stay ahead of regulatory changes in Africa

Africa’s regulatory environment is evolving quickly. For businesses managing employees across multiple African jurisdictions, keeping pace with these developments is both essential and unfortunately resource and time-intensive.

Africa HR Solutions operates across 46 African countries and helps businesses navigate exactly this kind of complexity, from employment compliance and work permits to payroll and HR administration.