President William Ruto has sought to reassure Kenyans that the Finance Act 2026 will not introduce fresh charges on everyday mobile services or basic household essentials, amid growing public debate and online claims about possible new taxes.
Speaking during the signing of the Finance Bill 2026 into law at State House Nairobi on Tuesday, the Head of State said concerns circulating around mobile money, land, and consumer goods were based on misinformation and did not reflect what is contained in the new law.
He maintained that services such as M-Pesa transactions, airtime, and data remain unchanged and will continue to operate under the current tax structure.
“There is no new tax on M-Pesa or mobile money. The money you send to your family, your business, or your friends will move tomorrow as it has always done. There is no new tax on mobile phones, airtime, or data,” Ruto said.
The President further dismissed claims that the law introduces new taxes on land ownership and second-hand clothes, saying those reports were inaccurate.
“Contrary to propaganda, misinformation, disinformation and fake news, the government did not propose any taxes that were largely alleged,” Ruto said.
He specifically clarified that neither freehold land nor any category of land has been targeted for new taxation under the Act.
“There is no proposal to introduce taxes on freehold land or any land for that matter. There was no proposal to introduce taxes on second-hand clothing or Mitumba,” he said.
Ruto repeated his assurance that mobile money services remain untouched, stressing that ordinary transactions will continue without additional charges.
“There is no new tax on M-Pesa or mobile money. The money you send to your family, your business or your friends will move tomorrow as it has always done,” he said.
He said the Finance Act 2026 is focused on improving fairness in tax collection by tightening enforcement, sealing loopholes, and ensuring compliance rather than increasing pressure on citizens.
“Let me state clearly, this law does not raise taxes on ordinary Kenyans. Instead, it improves fairness by strengthening compliance, closing loopholes and ensuring that every person and business pays what is lawfully due,” he said.
He added that the government’s focus is on tackling tax evasion and illegal financial flows rather than burdening workers and households.
“We are pursuing tax avoidance, not taxpayers, offshore schemes, not ordinary wages, and leakages, not livelihoods.”
According to Ruto, the new law also includes incentives aimed at boosting production and investment in key sectors such as manufacturing and clean energy. He cited support for electric mobility, including motorcycles, electric buses, electric bicycles, solar batteries, and locally assembled phones.
He also pointed to measures meant to protect local industries, including an increase in import duty on sugar from Sh7.50 to Sh40 per kilogram to safeguard domestic factories and farmers.
“The Act increases duty on imported sugar from Sh7.50 to Sh40 per kilogram, safeguarding 17 operational sugar factories and the livelihoods of two million farmers,” he said.
The President also announced a six-month tax amnesty that will allow taxpayers to clear penalties and interest on outstanding obligations.
He further said mortgage tax relief has now been extended to borrowers from registered microfinance institutions, expanding access beyond commercial banks.
With the signing of the Finance Act 2026 and the Appropriation Act 2026, he said the government now has the legal and financial framework to implement its development agenda under the Bottom-Up Economic Transformation Agenda.
“Kenya now has both the legal framework and the resources to finance its priorities, create jobs, strengthen livelihoods and invest in the future under the Bottom-Up Economic Transformation Agenda,” he said.