NAIROBI, Kenya, May 25-Parliament is set to conclude public participation on Kenya’s Finance Bill 2026 today, following the lapse of the two-week window period that saw consultations with stakeholders, industry groups and members of the public on the proposed tax measures shaping the 2026/27 fiscal framework.
The National Assembly’s Departmental Committee on Finance and National Planning opened the submission window on May 11, inviting Kenyans to submit memoranda on the Finance Bill (National Assembly Bill No. 26 of 2026), as part of constitutional requirements for public participation in lawmaking.
The process was anchored on Article 118(1)(b) of the Constitution and Standing Order 127(3) of the National Assembly Standing Orders, which require Parliament to facilitate public involvement in legislative processes.
The Bill, sponsored by Kuria Kimani, proposes amendments to several tax laws including the Income Tax Act, VAT Act, Excise Duty Act, Tax Procedures Act, Stamp Duty Act and the Road Maintenance Levy Act, with a focus on tax administration reforms, revenue mobilization and alignment with emerging digital and financial systems.
Among the key proposals is the expansion of the definition of “royalty” to include payments related to digital payment platforms, software distribution systems and transaction networks, effectively broadening the tax net on digital services and fintech operations.
It also proposes a 25 percent excise duty on mobile phones, a move expected to impact handset prices, alongside new levies on plastics, coal and vintage vehicles, and higher excise rates on tobacco products.
The Bill further introduces provisions requiring virtual asset service providers to comply with tax reporting obligations under the Virtual Asset Service Providers Act, 2025, reflecting the government’s push to regulate digital assets and cryptocurrency-related transactions.
In addition, the Kenya Revenue Authority would be empowered to generate pre-filled tax returns using data from its electronic tax systems, while taxpayers face revised filing timelines under the proposed changes.
On VAT, the Bill proposes shifting several goods; including electric mobility products, solar and lithium-ion batteries, and animal feed inputs; from zero-rated to exempt status, a change analysts say could raise production costs by limiting input tax recovery.
Following the closure of submissions today, the Finance and National Planning Committee is expected to review all memoranda and prepare a report with recommendations that will guide debate at the committee stage in Parliament.
“NOW THEREFORE, in compliance with Article 118(1) (b) of the Constitution and Standing Order 127(3), the Clerk of the National Assembly hereby invites the public and stakeholders to submit memoranda on the Finance Bill (National Assembly Bill No. 26 of 2026) to the Departmental Committee on Finance and National Planning.”
“Any written Memoranda on the Bill should indicate the name of the person or organization submitting it and their contact details and should be hand-delivered to the Office of the Clerk, First Floor, Main Parliament Buildings, Nairobi or emailed to cna@parliament.go.ke and financecommitteena@parliament.go.ke to be received on or before Monday, 25th May 2026 at 5.00 p.m.”
Lawmakers will then consider, amend or reject clauses before the Bill is forwarded to President William Ruto for assent ahead of implementation in the 2026/27 fiscal year.
The process comes at a time when Kenya is balancing revenue mobilization pressures with public sensitivity to taxation following the controversial Finance Bill 2024, which triggered widespread protests and forced its withdrawal.
Kenya’s fiscal reforms are also being closely monitored under its ongoing programme with the International Monetary Fund, as the country seeks to narrow its budget deficit and stabilize debt levels.
