The Finance Bill, 2026 was published on 30th April and is now before Parliament and every Kenyan deserves to know what is in it.
The government targets Ksh3.63 trillion in revenue for 2026/27 and a wider budget deficit of 5.3% of GDP in the 2026/27 fiscal year (July-June) up from 4.7% in 2025/26. These are not unreasonable fiscal objectives but the manner in which the burden of achieving them is distributed is a cause for serious concern.
On tax filing timelines, the Bill moves the income tax return deadline to April 30th which is two months earlier than the current June 30th and compresses nil return filing to January 31st. This reduces the time available for audit completion, cash flow planning and compliance. For small businesses and individual traders, this is not administrative reform. It is an additional compliance cost they can ill afford.
On mitumba, the Bill inserts a new Section 12H into the Income Tax Act which deems profit at 5% of customs value payable upfront before goods are released by KRA as a final tax. A trader importing a bale worth Ksh1 million pays Ksh50,000 regardless of whether they make a profit or a loss. I cannot in good conscience describe this as equitable.
The Bill increases residential rental income tax from 7.5% to 10%. Absent a serious enforcement framework, this will drive non-compliance rather than revenue. The government must fix the enforcement gap before it increases the rate. One without the other is burden-shifting.
On digital financial services, the Bill removes existing VAT exemptions on money transfers and payment processing. These are the tools of financial inclusion that millions of Kenyans including the very people this government says it wants to reach rely on daily. Making them more expensive will not serve the objective of a broader tax base.
By including interchange and merchant service fees within the definition of management or professional fees for withholding tax purposes, the Bill introduces a compliance burden into automated banking processes. That burden will be passed on to businesses and ultimately to consumers.
The amendment to Section 24 of the Income Tax Act empowers KRA to deem at least 60% of a company's undistributed income as dividends for tax purposes. This fails to account for legitimate decisions on reinvestment, working capital and business growth. It is a retrogressive measure that sends the wrong signal to the investors Kenya needs.
A 25% excise duty on telephones for cellular and wireless networks is proposed. A phone is not a luxury. It is how Kenyans bank, communicate, conduct business and access government services. Parliament must interrogate this carefully.
On PAYE, Kenyans were led to expect relief and a restructuring of the tax bands to ease the burden on salaried workers. That proposal does not appear in this Bill. That is not a minor omission. An explanation is owed to every employed Kenyan who was waiting for it.
To be fair, the Bill is not without merit. The reduction of corporate tax for non-resident companies from 37.5% to 30% improves our investment climate. The extension of the tax amnesty to cover liabilities up to 31st December 2025 provides a genuine and welcome pathway to compliance. VAT exemptions on electric buses, bicycles, dialysers, animal feed raw materials and PPP infrastructure are sensible measures. The clarity introduced on trust taxation ensuring beneficiaries are not taxed on income already taxed at the trust level and the recognition of gratuity contributions as exempt income are also steps in the right direction.
Be that as it may, we cannot afford a repeat of June 2024. Parliament must discharge its oversight role with the seriousness this moment demands. They should not merely rubber-stamp what the Treasury has placed before it. Every clause must be scrutinised. Every punitive or ambiguous provision must be rejected or amended.
#FinanceBill2026 #PublicParticipation
This is one of the oldest looting tricks in government.
A KSh 6 billion project is awarded.
60% of the work gets done.
Then the contract is “cancelled.”
Suddenly, a new contractor is brought in and given KSh 6.5 billion to complete the remaining 40%.
Read that again.
60% of the money’s work is already done.
But the remaining 40% now costs MORE than the whole project.
And we’re told it’s just “procurement issues.”
At what point do we stop calling this incompetence and start calling it organized theft?
How many public projects in Kenya do you think have followed this script? And many kenyans usually don't notice
Karen Nyamu MUST step down or be removed from the Senate!!
What happened to that student in Senate was deeply inappropriate and honestly very uncomfortable to watch. A child walked into a national institution under a school program and somehow ended up being spoken about in a suggestive manner by an adult holding public office.
And no, we will not reduce this to “Karen just being Karen..” There are certain lines that should never be crossed, especially when children are involved!!
A young girl should be able to walk into Senate and leave feeling inspired, respected and safe, not embarrassed, sexualized or turned into the center of inappropriate remarks in front of an entire room and the country.
Public office comes with responsibility, maturity and self-control. If someone cannot understand the weight of their words around minors, then they honestly should not continue occupying such a position.
And honestly, this entire situation raises very serious questions about how Karen Nyamu even ended up in the Senate in the first place.
Who nominates these people?
What exactly is the criteria?
What values are being rewarded?
What kind of conduct qualifies someone to represent Kenyans at that level?
Because if this is the standard being normalized in our public institutions, then we genuinely have a deeper crisis as a country.
An apology alone is not enough. There must be accountability.
Pump prices shoot up by Sh28.69/ litre (Petrol) and Sh40.30/ litre (Diesel) with kerosene unchanged.
This is despite the government lowering VAT on fuel from 16% to 13% and pumping in Sh6.2 billion from the subsidy kitty.
The President Is Out of Order.
The Office of the Auditor General is a constitutional office, not a department of State House. Dismissing a report that questions the loss of KES 50 billion from SHA undermines the Constitution itself.
KES 50 billion is not a clerical error. It is public money collected from the sweat of Kenyans.
To brush aside such findings insults every Kenyan who struggles to access healthcare while public resources disappear.
You cannot swear to protect the Constitution on Tuesday and tear it up on Wednesday because the truth hurts.
“Credible reports from domestic and international organisations show evidence of extrajudicial killings, disappearances, arbitrary arrests, and concealment of dead bodies,” envoys say about Tanzania.
I’ve been saying this consistently on CNN
Bayern Munich become the first club in Europe’s top 5 leagues to start a season with 10 straight wins 🤯🥇
Vincent Kompany needs more credit for what he is doing at Bayern 👏
Sophie Njehia: Respect for the rule of law in this country is an enigma. Kenya is an active crime scene where corruption and bloodshed are taking centre stage.
#GenZManifesto
Denmark will increase its military budget by a combined 50 billion crowns ($6.99 billion) this year and next to address acute shortcomings, most notably in surface-to-air missile defence systems, the prime minister said on Wednesday. https://t.co/9NiTmIwC9J
"Thousands across Mozambique have contested this election and have said that's unfair."
Africa Correspondent @YousraElbagir reports as President-elect Daniel Chapo is sworn in.
https://t.co/n63bagxK2Q
📺 Sky 501 and YouTube
@Safaricom_Care 5 days past and you cannot pinpoint why I can't have Internet at home yet I have paid ???and you are not helping the situation by telling me to be patient.
Do we even have rights as consumers in this country??nkt
@Safaricom_Care The only message I keep on receiving is to be patient five days after...yet come 10th next month you'll disconnect the home fibre with no regard to the days I was patient.
It's unfair and unprofessional.
This monopoly shall come to pass too...