diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7325770d..0c11d2ec 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,50 @@
 
 All notable changes to this project are documented in this file.
 
+## 0.26.0
+
+**Release date:** 2022-06-01
+
+This prerelease comes with support for configuring the authentication to
+AWS KMS, Azure Key Vault and GCP KMS on multi-tenant clusters.
+A tenant can create a secret in their namespace with their KMS credentials
+and supply it to Flux using `Kustomization.spec.decryption.secretRef`.
+For more details on how to configure SOPS decryption with KMS, see the
+[docs](https://github.com/fluxcd/kustomize-controller/blob/v0.26.0/docs/spec/v1beta2/kustomization.md#secrets-decryption).
+
+Starting with this version, the controller conforms to the Kubernetes
+[API Priority and Fairness](https://kubernetes.io/docs/concepts/cluster-administration/flow-control/).
+The controller detects if the server-side throttling is enabled and uses the
+advertised rate limits. When server-side throttling is enabled, the controller
+ignores the `--kube-api-qps` and `--kube-api-burst` flags.
+
+In addition, Kustomize has been updated
+to [`v4.5.5`](https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv4.5.5) 
+which comes with significant performance improvements for OpenAPI parsing.
+
+Improvements:
+- Support AWS KMS credentials using decryption secretRef
+  [#641](https://github.com/fluxcd/kustomize-controller/pull/641)
+  [#667](https://github.com/fluxcd/kustomize-controller/pull/667)
+- Support GCP KMS credentials using decryption secretRef
+  [#635](https://github.com/fluxcd/kustomize-controller/pull/635)
+- Update SOPS to v3.7.3
+  [#647](https://github.com/fluxcd/kustomize-controller/pull/647)
+- Update controller to kustomize v4.5.5
+  [#660](https://github.com/fluxcd/kustomize-controller/pull/660)
+- Update dependencies
+  [#650](https://github.com/fluxcd/kustomize-controller/pull/650)
+- Update Alpine to v3.16
+  [#661](https://github.com/fluxcd/kustomize-controller/pull/661)
+- Update go-yaml to v3.0.0
+  [#665](https://github.com/fluxcd/kustomize-controller/pull/665)
+- Update source-controller/api to v0.25.0
+  [#671](https://github.com/fluxcd/kustomize-controller/pull/671)
+
+Fixes:
+- Set digests in image override
+  [#655](https://github.com/fluxcd/kustomize-controller/pull/655)
+
 ## 0.25.0
 
 **Release date:** 2022-05-03
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 77461b8b..0df4bc90 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
   - name: fluxcd/kustomize-controller
     newName: fluxcd/kustomize-controller
-    newTag: v0.25.0
+    newTag: v0.26.0
diff --git a/go.mod b/go.mod
index 7122aead..2a0b2c18 100644
--- a/go.mod
+++ b/go.mod
@@ -19,7 +19,7 @@ require (
 	github.com/cyphar/filepath-securejoin v0.2.3
 	github.com/dimchansky/utfbom v1.1.1
 	github.com/drone/envsubst v1.0.3
-	github.com/fluxcd/kustomize-controller/api v0.25.0
+	github.com/fluxcd/kustomize-controller/api v0.26.0
 	github.com/fluxcd/pkg/apis/acl v0.0.3
 	github.com/fluxcd/pkg/apis/kustomize v0.4.1
 	github.com/fluxcd/pkg/apis/meta v0.14.1