Parliament invites submissions on finance bill 2026

Kenya's National Assembly has called for public submissions on the Finance Bill 2026, which proposes new taxes on mobile phones, imported second-hand clothes and digital assets.

The National Assembly published a notice inviting the public and stakeholders to submit memoranda on the bill by May 25 at 5 pm. Submissions can be delivered to the Office of the Clerk at Parliament Buildings in Nairobi or emailed to the provided addresses. The bill, sponsored by Molo MP Kuria Kimani, seeks to amend several tax laws including the Income Tax Act and Excise Duty Act.

Key proposals include a 25 per cent excise duty on mobile phones, a deemed profit tax where 5 per cent of the customs value of imported mitumba goods is treated as taxable income, and new rules for taxing digital platforms and virtual assets. The bill would also shorten the tax filing deadline from June 30 to April 30 and lower the corporate tax rate for non-resident persons from 37.5 per cent to 30 per cent.

The bill was officially published on May 6 and has drawn criticism from the Law Society of Kenya, human rights activists and members of the public over its potential impact on consumers and businesses. The invitation for views follows constitutional requirements for public participation in the legislative process.

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Treasury Cabinet Secretary John Mbadi reviewing PAYE tax relief documents in a government office
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Mbadi: PAYE tax relief proposal still under active consideration

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Treasury Cabinet Secretary John Mbadi has confirmed that the government’s earlier proposal to raise the PAYE tax-free threshold from KSh 24,000 to KSh 30,000 remains under consideration, despite its absence from the draft Finance Bill 2026.

The Kenyan government has proposed new tax measures on second-hand clothing and mobile phones as part of the Finance Bill 2026. Treasury Cabinet Secretary John Mbadi tabled the bill in Parliament at the end of April.

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Kenyan opposition leaders have urged Parliament to reject the Ministry of Finance's Infrastructure Bill, 2026 and halt the plan to sell government shares in Safaricom. They argue that the proposals threaten constitutional safeguards for public funds and strategic assets. They also call for an independent review and thorough assessment of assets before any action.

The National Treasury has published the draft Virtual Asset Service Providers (VASP) Regulations 2026 to oversee Kenya's crypto businesses. The measures seek to protect consumers and combat financial crimes such as money laundering. Public consultations are underway through April.

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Kathiani MP Robert Mbui has introduced the Traffic (Amendment) Bill, 2026, which changes how police detain vehicles and motorcycles in Kenya. The bill aims to balance law enforcement with private property protection by addressing vehicle owners' long-standing concerns over prolonged and unjustified detentions. It specifies when and how police can detain vehicles.

Kenya's Senate has summoned Treasury Cabinet Secretary John Mbadi and Meru Governor Isaac Mutuma after the National Treasury halted fund transfers to the county. The measure, effective from April 10, enforces payment of a court-awarded debt to a foreign investor but sparks fears of salary delays and service disruptions. Lawmakers question the decision's proportionality.

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The Kenya Union of Savings and Credit Co-operatives (KUSCCO) has submitted proposals to the National Treasury for removing excise duty on SACCO member transactions. The move aims to cut financial service costs for members, many of low- and middle-income. Other suggestions include adjusting income tax bands and broadening cooperative society definitions.

 

 

 

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