Treasury Cabinet Secretary John Mbadi has defended the Finance Bill 2026, saying it introduces targeted tax reforms aimed at simplifying digital taxation, clarifying levies on mobile phones, virtual assets and card transactions, and improving fairness in the rapidly growing digital economy.
Addressing the media on Monday , the CS said the government was correcting widespread misunderstanding of the proposals and insisted that many controversial measures circulating in public debate do not appear in the current Bill.
“It is so clear, it is so flowing, it is so simple. I don't know why this issue must always be debated when we have provided clarity,” he said.
On mobile phone taxation, Mbadi said the Bill is designed to streamline existing charges rather than introduce new ones. He noted that mobile phones currently attract multiple levies including VAT, excise duty, import duty and other fees, which he said will be consolidated into a single structure to simplify compliance.
Mbadi also defended proposals on virtual assets, saying the fast-growing digital sector requires clearer rules.
“We are just recognizing that there is a new kid in the block, a new sector coming in, virtual assets. They should be brought into the reporting system and reporting framework,” he said, adding that the aim is to ensure “fairness and equity” in taxation.
On digital payments and card transactions, the CS said the Bill seeks to clarify grey areas following court rulings on interchange fees and digital payment services.
Mbadi questioned why such income should escape taxation, arguing: “Are they supposed to just enjoy that income without paying tax? That’s a question we should ask ourselves.”
He further clarified that Safaricom is not targeted in the new proposals, following consultations with the company, and insisted that the reforms only seek to close legal gaps in taxing digital intermediaries and card networks such as Visa and Mastercard.
The Cabinet Secretary dismissed claims that the Bill introduces a 5% withholding tax on digital content monetization.
“The finance bill of 2026 does not contain a proposal introducing a 5% withholding tax… contrary to some media reports,” he said.
He also rejected comparisons with earlier withdrawn proposals, insisting measures such as VAT on bread, motor vehicle circulation tax and mobile money data access are not part of the current Bill.
However, the Bill has faced political opposition with Wiper Party leader Kalonzo Musyoka urging Kenyans to reject the Finance Bill 2026/27 in its current form, arguing that it contains hidden provisions that could introduce burdensome lease arrangements, particularly affecting residents from the Mt Kenya region.
Speaking at ACK St Stephen’s Cathedral in Kenol, Murang’a County on Sunday, he called for scrutiny of the proposals, saying: “Reject Finance Bill 2026/27 as it is, as it is going to quietly introduce leases which will be really hard for people from the Mt Kenya region.”
He also argued that the Bill does not address the economic hardships facing Kenyans and instead adds pressure on households already struggling with the high cost of living.