Employers oppose new taxes in finance bill 2026

The Federation of Kenya Employers has opposed tax measures in the 2026 Finance Bill, citing heavy burdens on workers and businesses. FKE plans to submit an official objection on Monday.

The Federation of Kenya Employers (FKE) has opposed proposed tax measures in the 2026 Finance Bill. FKE Chief Executive Officer Jacquline Mugo said on Thursday that workers face multiple statutory deductions that shrink their pay and raise business costs.

Mugo announced that FKE will file an official objection to the bill on Monday before the National Assembly's Finance Committee. She called on the government to reduce high statutory deductions on employee payrolls.

The group also protested provisions allowing the Kenya Revenue Authority access to private data, describing it as a breach of privacy. The bill aims to improve tax compliance by granting KRA such powers.

This comes after earlier government promises to raise the tax-free income threshold for those earning below Ksh30,000, a proposal still under consideration according to Treasury Cabinet Secretary Mbadi.

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