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Kenya

Parliament invites public views on Finance Bill 2026 tax changes

The proposals include a 25 percent excise duty on mobile phones, new taxes on digital financial services, and removal of a withholding tax exemption for Kenya Airways on payments to foreign aviation service providers.

NAIROBI, Kenya, May 11 – The National Assembly has invited members of the public and stakeholders to submit views on the Finance Bill 2026 as it begins review of proposed tax reforms affecting multiple sectors.

The Bill, before the Departmental Committee on Finance and National Planning, proposes amendments to key tax laws including the Income Tax Act, VAT Act, Excise Duty Act and Tax Procedures Act to expand the tax base and boost revenue collection.

The proposals include a 25 percent excise duty on mobile phones, new taxes on digital financial services, and removal of a withholding tax exemption for Kenya Airways on payments to foreign aviation service providers.

Treasury is targeting an additional Sh120 billion in revenue from the reforms, which are expected to affect telecoms, aviation, fintech and retail sectors while raising concerns over cost of living and business compliance.

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