Business Leaders Push Back on Digital Tax proposal in Finance Bill 2026
"You tax digital payment platforms, you drive consumers to the mattress and to the informal economy,” a KEPSA representative said, warning that such a shift would ultimately undermine government revenue collection. - Kenya breaking news | Kenya news today | Capitalfm.co.ke..
✨ Key Highlights
Kenya's private sector is pushing back against the proposed digital tax in the Finance Bill 2026, warning it could harm financial flows and the tax base.
- The Kenya Private Sector Alliance (KEPSA) advises against taxing mobile banking services, fearing a shift to informal, untaxable channels.
- KEPSA proposed a 5 percent reduction in Pay-As-You-Earn (PAYE) tax as a more beneficial alternative, estimating it could generate KSh210 billion to KSh280 billion.
- The contested tax measures are projected to generate a significantly lower KSh35 billion to KSh90 billion.
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Finance Bill 2026 Draws Mixed Reactions From Stakeholders - May 2026
Kenyan businesses broadly support a proposed tax amnesty program under the Finance Bill 2026, but are urging lawmakers to extend deadlines and reform laws surrounding tax refunds to avoid liquidity issues. Kenya's private sector is pushing back against the proposed digital tax in the Finance Bill 2026, warning it could harm financial flows and the tax base. Stakeholders and the National Assembly's Finance Committee are raising concerns about potential system inefficiencies at the Kenya Revenue Authority, opposing a proposal to shorten the annual tax filing deadline. Separately, Kenyan lawmakers are cautioning the National Treasury against its Sh4.82 trillion budget for the 2026/27 financial year, citing the risks posed by rising public debt and high oil prices amid global instability.
