Kenya: Fuel Prices, Taxes On Essential Commodities Dominate Public Concerns Ahead of Budget Reading
Nairobi — Kenyans across Nairobi are calling on the government to ease the burden of high fuel prices and reduce taxes on essential commodities ahead of the presentation of the Finance Bill 2026 by Treasury Cabinet Secretary John Mbadi in Parliament on Thursday.
Commuters, small-scale traders, salaried workers and informal sector players who spoke to Capital FM said the rising cost of transport and production continues to squeeze household incomes, warning that many families are struggling to cope with the high cost of living.
Their concerns come as the National Treasury seeks to defend the Finance Bill 2026, which the government says is largely focused on tax administration reforms, broadening the tax base and simplifying revenue collection rather than introducing new tax rates.
According to Treasury, the government expects to raise about Sh54 billion through administrative changes and improved tax compliance measures.
Among the proposals in the bill is a new single 25 percent tax to be charged during the activation of imported mobile phones.
Treasury CS John Mbadi has argued that the move is meant to replace the current cumulative tax structure that includes VAT, import declaration fees and railway development levies totaling 55.5 percent.
The bill also seeks to tighten oversight of digital and virtual assets by introducing reporting requirements targeting cryptocurrency transactions and digital financial platforms.
Additionally, the Treasury plans to stagger annual tax filing deadlines in a bid to ease pressure on the iTax system. Under the proposed structure, nil return filers would submit returns by December, salaried employees by April and businesses by June.
The government is also targeting improved tax compliance among self-employed professionals and property owners, including landlords, dentists and accountants.
Despite the Treasury’s assurances that the reforms are designed to improve efficiency and fairness, many Kenyans say the proposals fail to address the immediate economic pressures facing ordinary citizens.
Teddy, a Nairobi-based banker, said high fuel costs continue to drive up the prices of nearly all goods and services.
“They need to lower fuel prices first because when fuel goes up, everything else becomes expensive. The cost of living is already unbearable for many Kenyans,” he said.
Stephen Kamau, a videographer and digital content creator, urged the government to prioritize wananchi in the upcoming budget by reviewing fuel levies and reducing expenditure on top government officials.
“Fuel affects every sector of the economy. If taxes on petroleum products are reduced, businesses and ordinary citizens will feel some relief,” he said.
Several residents also raised concerns over rising transport costs, saying fare increases have become unsustainable for workers and low-income earners.
Kevin Owino, a trader in Nairobi, noted that transport expenses are consuming a significant portion of daily earnings, while construction worker Josphat Ndirangu said inflation has sharply reduced the value of wages.
“Some routes that used to cost KSh50 now cost KSh100. At times you are forced to choose between transport and buying food,” Ndirangu said.
Others questioned the level of public awareness surrounding the Finance Bill 2026.
Susan and Maureen Kemunto said many Kenyans still do not understand the contents of the bill or how the proposed measures could affect them directly.
“There needs to be more civic education so that ordinary citizens can understand what is being proposed and how it will affect their daily lives,” they said.
By Capital FM.
