Kenya: Parliament Invites Public Views On Finance Bill 2026 As New Tax Proposals Spark Concern

Nairobi — Parliament has opened the Finance Bill 2026 for public participation, setting the stage for national debate over proposed tax changes touching on mobile phones, mitumba imports, digital platforms and cryptocurrency transactions.

In a notice issued by the Clerk of the National Assembly, Kenyans and stakeholders were invited to submit memoranda on the proposed law, which is sponsored by Molo MP and Finance Committee Chairperson Kuria Kimani.

The proposed legislation seeks amendments to several tax laws, including the Income Tax Act, the Excise Duty Act and the Road Maintenance Levy Act.

Parliament said the exercise is being conducted in line with Article 118(1)(b) of the Constitution, which requires public involvement in legislative processes.

“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,” the notice stated.

The National Assembly directed that written submissions be delivered physically at Parliament Buildings in Nairobi or sent electronically through official parliamentary email addresses by May 25 at 5pm.

The public participation process comes against the backdrop of memories from the controversial Finance Bill 2024, which sparked nationwide Gen Z-led protests under the “Occupy Parliament” movement.

The demonstrations culminated in protesters breaching Parliament buildings on June 25, 2024, amid widespread anger over proposed tax increases, forcing President William Ruto to decline assent to the Bill following sustained nationwide pressure.

The announcement now ushers in the most politically sensitive phase of the Finance Bill process, with several proposals already triggering criticism online and raising concerns among traders, digital rights groups and business associations.

Among the most contentious proposals is the introduction of a deemed profit tax model targeting imported second-hand clothes, popularly known as mitumba.

Under the proposal, five per cent of the customs value of imported mitumba goods would automatically be treated as taxable income at the point of importation.

Traders fear the measure could sharply increase the price of second-hand clothing, which remains a critical source of affordable apparel for millions of low-income households.

The Bill has also drawn backlash over a proposal to introduce a 25 per cent excise duty on mobile phones for cellular and wireless networks, a move critics say could push smartphones further out of reach for many Kenyans and slow digital inclusion.

The concern is that the measure risks undermining Kenya’s digital economy by making internet-enabled devices more expensive, particularly for students, young people and small businesses.

Further amendments contained in the Bill seek to shorten annual tax filing timelines by moving the filing deadline from June 30 to April 30.

The proposed law also expands taxation linked to proprietary digital platforms, software usage and electronic payment systems, signalling increased scrutiny of Kenya’s growing digital commerce sector.

In a major policy shift, the Bill introduces provisions regulating virtual assets and virtual asset service providers, paving the way for tighter oversight of cryptocurrency transactions and digital finance platforms.

Other measures include reducing corporate tax for non-resident entities from 37.5 per cent to 30 per cent, expanding capital gains taxation on foreign ownership structures linked to Kenyan assets, and granting the Kenya Revenue Authority broader powers to generate pre-populated tax returns using electronically available taxpayer data.

By Capital FM.