Treasury Cabinet Secretary John Mbadi is defending proposed tax changes in the Finance Bill 2026 that would impose withholding tax on fees paid to global card payment firms like Visa and Mastercard.

• The proposed tax targets interchange fees and merchant service fees from card transactions, classifying them as management or professional fees subject to withholding tax.
• The move aims to broaden Kenya's tax base by taxing income earned from the country's financial sector.
• CS Mbadi stated that the tax is not intended to increase consumer costs and confirmed the removal of other controversial proposals, including taxes on bottled water, mobile phones, financial services, and second-hand clothes.