Lawyer and Kenya Human Rights Commission Programme Associate John Otieno says the Finance Bill 2026 is more focused on expanding the tax base than introducing new taxes.
Speaking during a Radio Generation interview on Monday, Otieno defended discussions around wealth tax, transparency, and accountability, arguing that Kenya’s taxation challenges are tied to weak public trust, poor service delivery, and limited transparency in public finance management.
Otieno outlined that his department focuses on public finance management and ensuring that state institutions properly manage public resources.
“We seek to hold accountable the state offices or various government institutions to ensure that they do their work well and that our finances are well taken care of,” he stressed.
Otieno explained that the commission’s work also touches on corruption, efficient use of public resources, and ensuring that public funds serve citizens effectively.
“We seek to achieve dignity for all persons,” he stated. “Since dignity is not a standalone right, it means that basically all the human rights accorded to us by the Constitution and international statutes are enjoyed by every person in Kenya.”
Turning to the Finance Bill 2026, Otieno described the proposals as “more measured” compared to previous finance bills.
“Its target is more to expand the tax base more than to introduce new taxes,” he highlighted. “We haven’t seen a lot of new taxes introduced, but rather most of the amendments in the Bill are administrative and geared towards expanding the tax base.”
The Finance Bill 2026 proposes a 25 percent excise duty on mobile phones, a new presumptive tax on mitumba imports, and a rise in residential rental income tax from 7.5 percent to 10 percent.
The Bill also proposes VAT on digital financial services, including mobile money platforms, and shorter tax filing deadlines for individuals and businesses.
Treasury says the measures are intended to widen the tax base and boost compliance, but critics warn they could increase the cost of living and place additional pressure on households and small businesses already struggling with high taxes and inflation.
The KHRC Programme Associate also addressed the growing discussion around wealth tax, saying there was widespread misunderstanding about how such a system would work.
“There’s a lot of misconception and misunderstanding on what wealth tax actually is,” he stressed.
Otieno explained that wealth tax proposals often target high-net-worth individuals rather than ordinary citizens, adding that some proposals suggest taxing dollar millionaires in Kenya through a net wealth model.
“Net wealth tax means everything you own combined minus your debts and liabilities,” he explained.
According to Otieno, wealth can increase not only through income but also through inheritance and appreciation of assets such as land.
“You buy land somewhere like Kitale or Kileleshwa and development comes up around it. Automatically the value of that land appreciates,” Otieno highlighted.
He argued that taxing appreciation in wealth differs from taxing income already earned and taxed.
“It isn’t income that was taxed, but rather it is wealth that you own that is being taxed,” the KHRC Programme Associate explained.
At the same time, he acknowledged concerns around double taxation and warned that poorly designed tax systems could discourage voluntary tax compliance.
“One of the ways to have an effective tax system is whereby there’s voluntary disclosure and voluntary remittance of tax,” he said.
He linked Kenya’s tax resistance partly to concerns about accountability and public service delivery.
Otieno contrasted Kenya’s situation with countries such as Germany, where he previously worked.
He noted that “the tax somebody pays is quite high, above 30 percent almost,” adding that despite the burden, “the education system is efficient. The transport is efficient.”
He recalled paying about 58 euros monthly for public transport while living in Germany. “I could go to any place at any time, just hop on, hop off at any point,” he said.
Otieno further discussed challenges around implementing wealth taxes in Kenya, saying the country still lacks a comprehensive wealth database.
He also pointed to difficulties in tracing beneficial ownership of companies and assets. “There’s a difference between direct ownership and beneficial ownership,” he explained.
Despite concerns around tax avoidance, Otieno maintained that taxation itself was not necessarily the problem.
“The tax in and of itself is not the problem,” he highlighted. “The problem is the relationship we have with paying tax.”
He concluded that public trust in taxation would improve if Kenyans saw stronger transparency, accountability, and efficient public services.
“If the attitude towards taxation is good, then you will have people willingly remitting taxes,” he said.