Free Practice Questions for KASNEB CA26

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Key Facts: KASNEB CA26 Exam

CA26

Intermediate Public Finance and Taxation Paper

KASNEB Qualifications Booklet

50%

Minimum Pass Mark Per Paper

KASNEB Examination Regulations

Kshs 3,000

Intermediate Part II Single Paper Fee

KASNEB Qualifications Booklet 2026

3 hours

Official Paper Duration

KASNEB April 2026 Format Notice

5 questions

Compulsory Questions Per Paper (from April 2026)

KASNEB April 2026 Format Notice

Kshs 2,400

Monthly Personal Relief for PAYE

Income Tax Act (2025/2026 rates)

KASNEB CA26 Public Finance and Taxation is the Intermediate CPA paper on Kenyan public finance and taxation. Candidates need 50% to pass, sit a three-hour paper of five compulsory questions (from April 2026), and pay Kshs 3,000 per paper plus standard KASNEB registration fees.

Sample KASNEB CA26 Practice Questions

Try these sample questions to review concepts for the KASNEB CA26 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 132+ question experience with AI tutoring.

1Under Kenya's Public Finance Management Act, 2012, what is the standard government financial year?

A.1 January to 31 December of the same year

B.1 July to 30 June of the following year

C.1 April to 31 March of the following year

D.1 October to 30 September of the following year

Explanation: The PFM Act, 2012 aligns Kenya's government financial year with 1 July to 30 June. Budget formulation, appropriation, and reporting cycles are built around this period for both national and county governments.

2Which constitutional principle requires that all public funds raised or received by the national government be paid into a central fund unless legislation authorises otherwise?

A.Fiscal decentralisation

B.Equitable sharing of revenue

C.Consolidation of public funds

D.Separation of powers

Explanation: Article 206 of the Constitution of Kenya, 2010 establishes the Consolidated Fund into which all revenues raised or received by or on behalf of the national government must be paid, subject only to narrow statutory exceptions.

3The four broad stages of the budget process in Kenya's public finance framework are BEST described as:

A.Planning, procurement, payment, and liquidation

B.Revenue collection, expenditure, borrowing, and investment

C.Drafting, tabling, assent, and gazettement only

D.Formulation, approval, implementation, and audit/evaluation

Explanation: Kenya's budget cycle under the PFM Act and related practice spans formulation by the Executive, approval by the legislature, implementation through exchequer releases, and audit/evaluation by oversight institutions such as the Controller of Budget and the Auditor-General.

4Which institution is primarily responsible for preparing the national budget estimates and managing the exchequer on behalf of the national government?

A.The Controller of Budget

B.The National Treasury

C.The Parliamentary Budget Office

D.The Kenya Revenue Authority

Explanation: The National Treasury, headed by the Cabinet Secretary for the National Treasury and Economic Planning, leads national budget preparation, fiscal policy, and exchequer management under the Constitution and PFM Act, 2012.

5At county level, which officer is responsible for coordinating county budget preparation and financial management?

A.The County Speaker

B.The County Public Service Board chair

C.The County Attorney

D.The County Treasury (County Executive Committee member for finance)

Explanation: Each county government's finance function sits in the county treasury, led by the County Executive Committee member responsible for finance. That office prepares the county fiscal strategy paper, budget estimates, and financial reports under Part IV of the PFM Act, 2012.

6Section 35(1) of the PFM Act, 2012 outlines the national budget process. Which activity belongs to the formulation stage?

A.Auditing of the accounts of the previous financial year by the Auditor-General

B.Court review of procurement disputes

C.Registration of taxpayers with KRA

D.Preparation of budget policy, ceilings, and detailed estimates by the National Treasury

Explanation: Formulation covers setting fiscal policy, revenue projections, spending ceilings, and detailed estimates before Parliament considers the Budget Policy Statement and Appropriation Bill. Auditing and tax registration fall outside this stage.

7What is the PRIMARY purpose of the Budget Policy Statement (BPS) in Kenya's national budget cycle?

A.To authorise specific payments from the Contingencies Fund

B.To set out the government's fiscal framework, macroeconomic targets, and policy priorities before detailed estimates are finalised

C.To register suppliers on the IFMIS portal

D.To certify that county revenue was equitably shared

Explanation: The BPS links fiscal policy to the medium-term expenditure framework. It informs Parliament and the public of revenue forecasts, deficit targets, and sector priorities ahead of the main budget estimates and Appropriation Act.

8Which document must the National Treasury publish to provide a review of the previous financial year and outlook for the coming year as part of budget preparation?

A.Medium Term Debt Strategy Paper only

B.Annual Procurement Plan

C.Tax Procedures Act compliance certificate

D.Budget Review and Outlook Paper (BROP)

Explanation: The BROP reviews fiscal performance against targets and sets out the outlook that feeds into the Budget Policy Statement and subsequent estimates. It is a key transparency document in Kenya's PFM cycle.

9Devolution under the Constitution of Kenya, 2010 created how many county governments with independent fiscal powers?

A.8 provinces

B.42 districts

C.290 constituencies

D.47 counties

Explanation: The Constitution established 47 county governments, each with power to raise revenue (where authorised), prepare and approve county budgets, and manage county finances subject to national framework legislation such as the PFM Act, 2012.

10The Division of Revenue Act primarily determines:

A.The corporate income tax rate for resident companies

B.Customs duty rates at the port of Mombasa

C.The retirement age of public officers

D.How revenue raised nationally is shared vertically between the national government and county governments

Explanation: The Division of Revenue Act implements Article 218 of the Constitution by allocating sharable revenue between national and county levels for each financial year, working alongside the County Allocation of Revenue Act for horizontal sharing among counties.

About the KASNEB CA26 Exam

CA26 Public Finance and Taxation is an Intermediate Level paper in the KASNEB Certified Public Accountants (CPA) qualification. It tests public financial management under the Constitution and PFM Act, 2012, oversight institutions, public debt, and Kenya's tax regime administered by KRA — including income tax, capital allowances, VAT, customs, and excise. From April 2026, the live paper comprises five compulsory questions in a three-hour session. This free practice bank reformats the same syllabus into 100 multiple-choice items for efficient revision.

Exam sponsor: Kenya Accountants and Secretaries National Examinations Board (KASNEB). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

3 hours per official paper (five compulsory questions from April 2026)

Passing Score

50% per paper

Exam / Certification Fees

Kshs 3,000 per Intermediate paper (plus Kshs 3,500 registration and Kshs 1,200 annual renewal for new students)

Exam sponsor website

Reported exam pass rate: Not published. KASNEB does not publish a single first-time pass-rate percentage for CA26 Public Finance and Taxation. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~18%

Public Financial Management

PFM Act, budget cycle, national and county treasuries, devolution, and revenue sharing

~8%

Funds & Procurement

Consolidated and Contingencies Funds, IFMIS, commitment control, and public procurement

~10%

Oversight

Controller of Budget, Auditor-General, parliamentary scrutiny, and public participation

~5%

Debt & PPP

Public debt sources, sustainability, county borrowing, and PPP frameworks

~7%

Tax Principles

Direct and indirect taxes, equity, avoidance versus evasion, and KRA

~20%

Income Tax

Charge, residence, PAYE, business income, corporation tax, and withholding

~6%

Capital Deductions

Wear and tear, investment deduction, balancing charge, and tax WDV

~5%

Tax Administration

Returns, objections, penalties, PIN, and eTIMS compliance

~8%

VAT

Registration, rates, input and output tax, returns, and import VAT

~10%

Customs & Excise

EAC CET, customs entry and valuation, excise duty, and rules of origin

~5%

Computations & Emerging Issues

Worked calculations, SEP tax, CGT, Finance Act updates, and tax treaties

Preparing for the KASNEB CA26 Exam

What You Need to Know

Passing score: 50% per paper
Exam length: 100 questions
Time limit: 3 hours per official paper (five compulsory questions from April 2026)
Exam / certification fees: Kshs 3,000 per Intermediate paper (plus Kshs 3,500 registration and Kshs 1,200 annual renewal for new students) Official sources

Using Our Practice Resources

Work through all 132 available questions
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KASNEB CA26: Suggested Study Strategy

1Read the PFM Act, 2012 Parts on national and county budget processes alongside the Constitution's fiscal chapters.

2Memorise KRA deadlines: PAYE by the 9th, VAT and instalment tax commonly by the 20th of the following month.

3Distinguish zero-rated VAT (0% with input credit) from exempt supplies (generally no input credit).

4Practise corporation tax, VAT, WHT, and wear-and-tear calculations — CA26 expects basic computations.

5Track annual Finance Act changes to rates, exemptions, and eTIMS requirements before each sitting.

6Link CA26 to CA23 Financial Reporting — tax provisions often interact with financial statement disclosures.

7Book examinations early through online.kasneb.or.ke and confirm your annual registration is active before the deadline.

Frequently Asked Questions

What is KASNEB CA26 Public Finance and Taxation?

CA26 is the Intermediate Level paper in the KASNEB CPA programme covering Kenyan public financial management and taxation. It examines PFM law, budget processes, and computation of taxes under income tax, VAT, customs, and excise administered by KRA.

Who administers the CA26 examination?

The examination is set and administered by the Kenya Accountants and Secretaries National Examinations Board (KASNEB) at designated centres in April, August, and December each year.

What is the pass mark for CA26?

Candidates must score at least 50% in CA26 to pass. A referred candidate re-sits only the failed paper at a later sitting.

How much does the CA26 examination cost?

The Intermediate Level examination booking fee is Kshs 3,000 per paper. New students also pay a one-time registration fee of Kshs 3,500 and an annual renewal fee of Kshs 1,200.

What is the official CA26 exam format from 2026?

From the April 2026 sitting, each KASNEB professional paper consists of five compulsory questions answered in a three-hour session. Marks per question are shown on the paper.

Which statutes are primary for CA26?

Key statutes include the Public Finance Management Act, 2012, the Income Tax Act, the Value Added Tax Act, 2013, the Excise Duty Act, 2015, and East African Community customs law as applied in Kenya.

When can I sit CA26?

You must be registered as a KASNEB CPA student with valid annual renewal and have completed or received credit for the Foundation Level before sitting Intermediate papers such as CA26.

Are these practice questions multiple-choice?

Yes. The official CA26 paper uses written compulsory questions, but this free bank provides 100 multiple-choice items with explanations so you can revise and self-test quickly.