Finance Bill 2026: Tax pressure mounts as Kenyans face cost of living strain
Finance Bill 2026 sparks debate as push to realise additional taxes faces backlash over mobile phone tax, digital payments and rising cost of living pressures...
✨ Key Highlights
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.
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Finance Bill 2026 Proposes Tax Increases Amid Cost of Living Strain - May 2026
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. 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. Kenya's annual inflation has climbed to 6.7% in May 2026, a significant increase from 5.6% in April 2026, driven by food, transport and fuel costs. The National Assembly Finance Committee is grappling with misinformation surrounding the Finance Bill 2026, as false claims about tax measures are misleading the public.
