National Assembly dismisses claims Finance Bill, 2026 charges annual rent on freehold

The National Assembly has dismissed online claims that the Finance Bill, 2026, contains provisions requiring Kenyans with freehold land to pay annual land rent.

Parliament described the reports as false and misleading, insisting the Bill has no clauses related to land ownership or land rent. It also denied claims that a separate law on freehold land conversion had been passed or signed.

In its clarification issued on Monday, the National Assembly emphasized that such clauses are not part of the version of the Bill currently under consideration by lawmakers.

“The false information alleges that the Finance Bill, 2026, has provisions on land, which will require Kenyans to pay annual land rent on freehold land,” the statement noted.

In its clarification, the National Assembly sought to directly address several claims being circulated on social media and online platforms.

The Assembly also rejected claims that the proposed law sought to convert freehold land into leasehold tenure or impose annual land rent obligations on landowners.

“No. This is purely false, incorrect, and untrue. The Bill has no provisions on land and land rent,” the Parliament rejected.

The statement further denied allegations that President William Ruto had signed into law another piece of legislation introducing similar land rent requirements on freehold landowners.

Parliament said no such legislation currently exists within the present parliamentary term.

“No. There is no such Bill in Parliament, and no Act has been passed by Parliament or signed into law by the President in the current Parliament relating to land rent on freehold land,” the statement added.

The clarification comes amid heightened public interest in the Finance Bill, 2026, which outlines proposed tax and revenue measures for the upcoming financial year.

Finance Bills in Kenya often attract intense scrutiny due to their potential impact on taxation, public spending, and the cost of living.

Key land-related proposals include a new non-resident rental income tax, where foreign landlords earning rent from property in Kenya will pay a final withholding tax (about 30% on gross rent).

This is meant to improve tax compliance in the real estate sector and ensure income from Kenyan property is taxed locally.

The Bill also strengthens tax administration on rental income, including expanded withholding tax rules and simplified registration for landlords.

However, it does not introduce land rent charges on freehold land itself, despite misinformation circulating online. Parliament and Treasury have clarified that the proposals focus on income generated from property, not ownership of land

In recent years, public debate surrounding finance legislation has increasingly played out online, with social media platforms becoming a major source of both official information and misinformation.

Parliament’s statement appeared aimed at countering claims that had gained traction among sections of the public concerned about land ownership rights.

The National Assembly urged Kenyans to verify information through official parliamentary channels rather than relying on unverified online posts.

“The National Assembly urges the public to disregard the false information circulating online which is intended to mislead Kenyans,” the statement said.

Parliament also directed members of the public to access copies of the Finance Bill, 2026 and other pending legislation through the official parliamentary website.

The house stressed that Copies of the Bill are currently before the House and are available through the National Assembly of Kenya.

The Finance Bill, 2026, is expected to continue attracting public attention as lawmakers debate its provisions in the National Assembly before any proposals can become law.

Under Kenya’s legislative process, Bills must undergo parliamentary debate, committee review and voting before they can be presented to the President for assent.

Parliament’s clarification signals an attempt to reassure landowners and counter speculation as public discussions around the proposed legislation continue.