Kenya’s Finance Bill 2026 Enters Final Review Stage

Kenya’s Finance Bill 2026 has entered a critical stage in Parliament after the National Assembly’s Departmental Committee on Finance and National Planning concluded stakeholder consultations and retreated to prepare its report for tabling before the House.

The committee’s move marks the transition from public participation and stakeholder engagement to the legislative phase where lawmakers will decide which tax proposals proceed unchanged, which are amended and which may be dropped altogether. The outcome is expected to shape Kenya’s fiscal policy direction and revenue collection strategy for the coming financial year.

Parliament Has Moved From Public Hearings to the Decisions That Will Shape Finance Bill 2026

For several weeks, the committee gathered views from citizens, businesses, industry groups and government agencies through public participation forums conducted across multiple counties.

Committee members now face the task of reconciling public concerns with the government’s fiscal objectives. Their report will serve as the foundation for debate when the Finance Bill reaches the floor of the National Assembly.

The committee’s emphasis on balancing stakeholder concerns with policy objectives suggests lawmakers are weighing both revenue needs and the potential economic effects of proposed tax measures.

Treasury Is Defending Ambitious Revenue Targets as Lawmakers Test the Numbers Behind Them

Appearing before the committee, National Treasury Principal Secretary Chris Kiptoo argued that the Bill seeks to simplify tax administration, improve compliance and broaden the country’s tax base.

Treasury estimates that the proposed measures could generate approximately KSh98 billion in additional revenue. Of that amount, KSh36.3 billion is expected to come from enforcement measures implemented under the Tax Procedures Act.

The KSh98 Billion Collection Goal

The revenue target reflects the government’s continued effort to strengthen public finances amid persistent fiscal pressures and growing expenditure demands.

Officials maintain that improved compliance and more effective enforcement will play a significant role in achieving these targets.

Growing Scrutiny of Revenue Forecasts

Committee members nonetheless questioned the reliability of revenue forecasting models and urged Treasury officials to improve future projections.

The scrutiny reflects broader concerns about whether projected collections can be achieved without creating unintended economic consequences or placing additional pressure on businesses and consumers.

Several of the Finance Bill 2026 Tax Proposals Remain Under Intense Scrutiny

Several proposals continue to attract public attention and parliamentary scrutiny.

Among them are plans to impose taxes on imported mobile phones at the point of activation, proposed changes to Pay As You Earn tax bands, mandatory use of electronic tax invoices through eTIMS for expense claims, taxation of betting winnings and Value Added Tax on certain digital financial transactions.

The Finance Bill is also facing legal scrutiny. The Consumers Federation of Kenya (Cofek) has petitioned the High Court seeking to suspend several proposed provisions, arguing that some measures could raise consumer costs, expand tax enforcement powers and expose sensitive financial information without adequate constitutional safeguards.

The Proposed Phone Activation Levy Has Emerged as One of the Bill’s Most Closely Watched Measures

The proposed taxation of imported mobile phones at activation has emerged as one of the most closely watched measures in the Bill.

Lawmakers sought clarification from both Treasury and KRA officials regarding implementation, compliance and the potential impact on consumers and the broader digital economy.

Questions remain about how the measure would affect smartphone affordability and digital access across the country.

Digital Taxes and Compliance Rules Reveal How the Government Wants to Expand Revenue Collection

The Bill also continues the government’s push toward greater digitalisation of tax administration.

Proposals involving eTIMS and digital financial transactions point to a broader strategy of expanding visibility into economic activity while strengthening compliance mechanisms.

Concerns About Investor Confidence Are Becoming Part of the Parliamentary Debate

One of the clearest themes to emerge during committee deliberations was the importance of policy predictability.

Members argued that stable and consistent tax policies are essential for investor confidence, business planning and long-term economic growth.

Their comments indicate growing awareness within Parliament of the relationship between fiscal policy decisions and private sector investment.

As lawmakers prepare their recommendations, the challenge will be balancing revenue mobilisation with the need to maintain a competitive and predictable business environment.

KRA Continues to Make the Case for a Wider Tax Base and Stronger Enforcement

KRA Commissioner General Adan Mohamed defended proposals aimed at improving compliance and widening the tax net.

He argued that a relatively small segment of taxpayers currently carries a significant share of the country’s tax burden and called for broader participation across the economy.

The position aligns with KRA’s longstanding objective of increasing compliance through improved enforcement, digital systems and expanded taxpayer registration.

The Next Phase of Finance Bill 2026 Will Determine How Kenya Balances Revenue and Growth

The committee’s report will provide the first clear indication of which proposals are likely to survive parliamentary scrutiny.

Several provisions, particularly those affecting mobile phones, digital transactions and tax administration, are expected to attract significant debate when lawmakers consider the Bill.

The coming parliamentary discussions will reveal how legislators intend to balance public concerns, economic competitiveness and the government’s need for additional revenue.

At its core, the Finance Bill 2026 debate reflects a broader policy challenge facing Kenya: how to strengthen revenue collection while sustaining investment, economic activity and taxpayer confidence in an increasingly complex fiscal environment.

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