The National Assembly has invited public and stakeholder submissions on the proposed Finance Bill 2026, which includes controversial tax proposals affecting mobile phones, digital assets, and imported mitumba goods. This comes after previous finance bills sparked significant public outcry and demonstrations.

• A proposed 25% excise duty on mobile phones is a key point of contention.
• The Departmental Committee on Finance and National Planning is accepting written memoranda until May 25, 5 pm.
• Notable criticisms have been raised by the Law Society of Kenya and human rights activists regarding the bill's impact on consumers and the digital economy.

President William Ruto has assented to three major bills, including the Income Tax (Amendment) Bill, aimed at reforming tax policies and fostering investment growth in Kenya.

• The Income Tax (Amendment) Bill will allow companies to reorganize ownership and move assets internally without incurring tax penalties, effective July 1.
• Key figure involved is President William Ruto, who signed the bills into law on Monday, May 11.
• The new law exempts transfers of property by a company to its shareholders during internal restructuring, provided assets are distributed proportionally to existing shareholding.

The Kenya Revenue Authority (KRA) has announced that salaried Kenyans can file their annual income tax returns even without their P9 forms.

• Taxpayers can use the "ITR For Employment Income Only" option on the iTax portal.
• This clarification comes as the June 30 filing deadline approaches.
• The P9 form summarizes annual income, PAYE deductions, and statutory contributions, and is typically issued by employers.

The Kenyan Parliament has opened the Finance Bill 2026 for public participation, inviting feedback on proposed tax changes affecting mobile phones, mitumba imports, digital platforms, and cryptocurrency.

• Proposed tax changes include a 5% tax on imported second-hand clothes (mitumba) and a 25% excise duty on mobile phones.
• The public and stakeholders can submit written memoranda to the Departmental Committee on Finance and National Planning until May 25.
• This public participation occurs amidst memories of the controversial Finance Bill 2024, which led to nationwide protests.

The Kenyan government is still considering increasing the tax-free Pay-as-You-Earn (PAYE) income threshold to Ksh 30,000, according to Treasury Cabinet Secretary John Mbadi.

• The proposal aims to raise the tax-free threshold from the current Ksh 24,000.
• Key figure: Treasury Cabinet Secretary John Mbadi confirmed the proposal is under consideration.
• The decision is expected before June 30 and ahead of the Finance Bill 2026 passage, with projections indicating a potential revenue loss of Ksh 35 billion annually.