Mediation talks between Kenya's National Assembly and the Senate over county revenue allocation have hit a deadlock, with the two Houses far apart on the proposed amounts.

• The National Assembly proposes Sh425 billion for counties, a marginal increase from their initial Sh420 billion offer.
• The Senate has reduced its demand from Sh454.7 billion to Sh440 billion.
• The disagreement stems from the Division of Revenue Bill, 2026, which dictates the sharing of national revenue between the national and county governments.

Kilifi residents have voiced strong opposition to several tax proposals within the Finance Bill 2026, particularly those impacting digital services and mobile devices, during recent public participation hearings.

• Key concerns include increased costs for essential communication and financial services, disproportionately affecting low-income households.
• The National Assembly’s Finance and National Planning Committee is collecting feedback from across the country.
• Taxes on mobile phone activations, digital transactions, bank cards, and betting winnings were among the most criticized proposals, with debates also centering on the potential impact of betting taxes on unregulated platforms.

The Kenyan Senate and National Assembly are nearing a deal on counties' revenue sharing, with key negotiations centering on a provision to protect devolved units from sudden funding cuts.

• The proposed revenue allocation is nearing consensus, with the National Assembly offering Sh425 billion and the Senate demanding Sh440 billion.
• Key figures involved include Senate Finance and Budget Committee Chairman Ali Roba and National Assembly Budget Committee Chairman Samuel Atandi.
• A critical point of discussion is Clause 5, aimed at insulating counties from arbitrary expenditure cuts due to revenue shortfalls, essential for safeguarding devolution per Article 219 of the Constitution.

The Kenya Association of Manufacturers (KAM) is warning that proposed tax changes in the Finance Bill 2026 could significantly increase the cost of essential products like electric motorcycles and mobile phones.

• KAM states that shifting key products from VAT zero-rated to VAT-exempt status would prevent local manufacturers from recovering input taxes, leading to higher consumer prices.
• The affected products include electric motorcycles, mobile phones, animal feed inputs, solar equipment, lithium-ion batteries, and bioethanol vapor stoves.
• KAM urges lawmakers to maintain the zero-rated status to support affordable clean energy technologies, local production, and Kenya's transition to a greener future.