MP Pukose defends changes to Finance Bill, 2026 after public input

Endebess Member of Parliament and Vice Chair of the Budget and Appropriations Committee Robert Pukose has defended Parliament’s review of the Finance Bill 2026, saying lawmakers reshaped key Treasury proposals after receiving public input, including contentious tax plans affecting second-hand clothing traders and rules on filing nil tax returns.

Speaking during a Radio Generation interview on Tuesday, Pukose said Parliament did not simply pass the proposals as they were submitted, but instead made changes after listening to citizens and stakeholders, especially those in the mitumba sector who opposed new tax measures.

He pointed out that the original Treasury proposal on second-hand clothing was revised after consultations, with MPs choosing to drop a proposed levy after hearing concerns from traders.

“When the government was initially proposing to exempt the 7.5 and at the same time introduce tax for the sales at 5%, then Parliament, after we heard the mitumba people, we accepted their proposal, and therefore, as a government side, we said no to that tax and voted to remove that 5% that was being introduced,” he explained.

Pukose also addressed concerns around tax compliance rules affecting young people, saying having a Kenya Revenue Authority PIN does not mean a person is earning an income or is formally employed.

He noted that many university students obtain PINs for routine administrative needs and should not be treated as taxable individuals simply because they are required to file returns.

The legislator said Parliament questioned the fairness of penalising students for submitting nil returns or for failing to file when they have no income to report.

He added that MPs agreed that such concerns raised during public participation should guide changes to the Bill, insisting that the final version reflects input from Kenyans as well as parliamentary debate on fairness and tax compliance.

The Finance Bill 2026 was tabled in Parliament on April 30, 2026, by National Treasury Cabinet Secretary John Mbadi as part of the annual budget process setting out tax and revenue measures for the 2026/27 financial year.

During debate in the National Assembly in May and June 2026, lawmakers reviewed and amended several clauses before the Bill was passed at the Third Reading on June 18, 2026, clearing it for transmission for presidential assent.

Among the proposals was a 5% tax on imported second-hand clothing based on customs value, aimed at capturing revenue from mitumba imports at the point of entry.

However, MPs adjusted parts of the Treasury plan following public participation, with some raising concerns that the measures could increase the cost of living for ordinary Kenyans.

On nil returns, the Bill retains administrative requirements for individuals with Kenya Revenue Authority PINs to file returns even when they have no income, though MPs have continued to debate possible exemptions or protections for students and unemployed youth.

After parliamentary approval, the Bill was forwarded for presidential assent and is expected to be signed into law on June 23, 2026, in line with the national budget timetable.

Pukose maintained that Parliament’s final position reflects citizen participation and engagement, saying the Finance Bill 2026 captures the outcome of public input and legislative review on taxation and economic fairness.