The National Assembly has invited members of the public and stakeholders to submit their views on the proposed Finance Bill 2026.
The notice sets the stage for what is expected to be a heated national debate over new tax measures that have already sparked public outrage and criticism from civil society groups.
In a notice issued by the Clerk of the National Assembly, Parliament said the public participation exercise is being conducted in compliance with Article 118(1)(b) of the constitution, which requires Parliament to facilitate public participation and involvement in legislative processes.
“In compliance with Article 118(1)(b) of the Constitution and Standing Order 127(3), the Clerk of the National Assembly hereby invites the public and stakeholders to submit memoranda on the Finance Bill (National Assembly Bill No 26 of 2026) to the Departmental Committee on Finance and National Planning,” the notice says.
The call for public submissions now opens the next phase of scrutiny for the proposed law, which seeks wide-ranging amendments to tax and revenue measures expected to affect consumers, businesses, investors and Kenya’s digital economy.
The Finance Bill 2026, sponsored by Kuria Kimani, who also chairs the Departmental Committee on Finance and National Planning, proposes amendments to several laws including the Income Tax Act, Excise Duty Act and the Road Maintenance Levy Act.
However, some of the proposed measures have triggered backlash online and concern among human rights defenders, business associations and digital rights activists who fear the proposals could increase the cost of living and slow economic activity.
Among the most controversial proposals is the introduction of a 25 per cent excise duty on mobile phones for cellular and wireless networks, a move that critics say could significantly raise the cost of smartphones and undermine digital access, particularly among young people and low-income earners.
The Bill also introduces a deemed profit taxation model targeting imported second-hand clothes, commonly known as mitumba.
Under the proposal, five per cent of the customs value of imported mitumba goods would be treated as taxable income payable at the point of importation.
Traders have warned that the move could push up the cost of second-hand clothing, a major source of affordable apparel for millions of Kenyans.
Further proposals seek to reduce tax filing deadlines by two months, moving the annual filing date from June 30 to April 30.
The Bill also proposes changes in the taxation of digital platforms and software distribution by expanding taxable payments linked to proprietary digital platforms, software usage and payment systems.
In what signals a major shift in oversight of Kenya’s fast-growing digital finance sector, the proposed law introduces provisions on virtual assets and virtual asset service providers, paving the way for tighter regulation and reporting requirements in cryptocurrency-related transactions.
Other proposed changes include reducing corporate tax for non-resident persons from 37.5 per cent to 30 per cent, expanding capital gains taxation involving foreign ownership structures linked to Kenyan assets and granting the Kenya Revenue Authority broader powers to generate pre-populated tax returns using data available in electronic systems.
The National Assembly directed that written memoranda be submitted either physically at Parliament Buildings in Nairobi or electronically through official parliamentary email addresses by May 25 at 5pm.
The public participation process comes nearly two years after the controversial Finance Bill 2024 triggered massive Gen Z-led protests across the country.
The demonstrations, largely organised through social media under the “Occupy Parliament” movement, culminated in protesters storming Parliament buildings on June 25, 2024, forcing President William Ruto to decline assent to the Bill following nationwide outrage over proposed tax hikes.
