Parliament has kicked off nationwide consultations on the Finance Bill, 2026, with lawmakers seeking public views on wide-ranging tax proposals expected to raise billions in new revenue for the government’s upcoming budget.
The National Assembly’s Departmental Committee on Finance and National Planning began the stakeholder engagement process today, with hearings set to continue until May 29. The exercise is aimed at collecting input from Kenyans before MPs finalize their recommendations on the proposed tax changes.
The Bill is expected to help the government raise about Sh117 billion through amendments touching on several tax laws, even as authorities move to simplify tax administration and strengthen compliance.
According to the committee, the proposed legislation seeks to amend the Income Tax Act, Value Added Tax Act, Excise Duty Act, Tax Procedures Act, Miscellaneous Fees and Levies Act, and the Stamp Duty Act.
Lawmakers have stated that the reforms are meant to make tax compliance easier and remove outdated sections in existing laws.
“The Finance Bill, 2026, has been introduced as a key policy instrument to support revenue mobilization and improve tax administration,” the committee said in a statement ahead of the hearings.
Parliament has also indicated that the Bill is part of wider efforts to improve “clarity, efficiency, and compliance” within the tax system, as the government looks to shore up funding for its spending plans.
The Finance Bill, 2026 is tied to the proposed Sh4.7 trillion national budget for the 2026/27 financial year. The National Treasury has projected revenues of about Sh3.5 trillion, leaving a gap that the new tax measures are expected to help narrow.
The public participation process comes at a time when tax policy remains highly sensitive, following earlier finance bills that sparked widespread public opposition and led to protests across the country, forcing adjustments in government proposals.
Among the key measures under consideration are changes to rental income tax, updates to withholding tax rules, tighter compliance requirements, expanded taxation on betting and digital transactions, and proposals offering tax amnesty on selected liabilities.
The committee has called on members of the public and different stakeholders to submit their memoranda and views before the consultations close at the end of May, ahead of parliamentary debate and possible amendments.