The Finance Bill 2026 has sparked debate in Kenya as it proposes significant tax increases to raise approximately Sh120 billion amid persistent cost of living pressures.

• The bill introduces changes including a 25% excise duty on mobile phones and reclassifying zero-rated VAT products as exempt, potentially raising consumer prices.
• Key organizations involved include the Treasury and the Kenya Revenue Authority (KRA), which is targeting revenue collection of about Sh2.7 trillion for the 2025/26 financial year.
• Economists and tax experts, such as KPMG Associate Director Kiema Onesmus, warn that the measures lean heavily on revenue generation without offering short-term household relief and could hinder economic growth.

Kenya's annual inflation has climbed to 6.7% in May 2026, a significant increase from 5.6% in April 2026.

• The annual inflation rate reached 6.7% in May 2026.
• The Kenya National Bureau of Statistics (KNBS) reported the rise.
• The increase was primarily driven by higher costs for food (9.4%), transport (16.5%), and fuel.

The National Assembly Finance Committee is grappling with misinformation surrounding the Finance Bill 2026, as public participation concludes. False claims about tax measures are misleading the public, prompting a clarification from Parliament.

• The committee chairman, Kuria Kimani, stated that stakeholders are relying on unofficial documents, causing confusion about provisions like rental income tax and Mitumba taxation.
• The National Assembly of Kenya took out newspaper advertisements to debunk false reports circulating online, particularly regarding allegations of new annual land rent on freehold land.
• Parliament has emphatically stated that the Finance Bill 2026 contains no clauses related to land ownership, land rent, or conversion of freehold land to leasehold tenure.

Mitumba traders in Kenya are advocating for a 5% presumptive tax on imported second-hand clothing, presenting their proposal to the National Assembly's Finance Committee as part of the Finance Bill 2026 public participation.

• A proposed 5% tax on imported second-hand clothes.
• The Mitumba Consortium Association of Kenya (MCAK) is the driving force behind the proposal.
• This move aims to formalize the sector and contribute to the national tax base, with the Committee Chairperson praising it as patriotic.