By Benadeta Mwaura - Reporter
Kenya, May 25, 2026 - John Mbadi has defended controversial tax proposals targeting mobile phones and digital platforms under the Finance Bill 2026, insisting the measures are aimed at “streamlining” the tax regime rather than increasing the burden on Kenyans.
The remarks come as public participation on the Finance Bill officially comes to an end today at 5pm, marking the final window for Kenyans to submit views on one of the country’s most debated tax proposals since the Finance Bill 2024 protests.
Speaking amid growing public concern over the cost of living and rising taxation pressure, Mbadi dismissed claims that the government was introducing punitive taxes on smartphones.
The Treasury CS argued that the proposed measures are intended to harmonize taxation within the telecommunications and digital ecosystem.
Mbadi maintained that the reforms are being misunderstood by sections of the public and political leaders, saying the government is not seeking to overburden ordinary Kenyans but to improve tax administration and seal loopholes within the sector.
The Finance Bill 2026 has triggered intense debate across the country, particularly around proposals affecting digital transactions, rental income, smartphones and electronic payment systems.
Among the proposals attracting public attention is the planned taxation framework around mobile phones and digital payment infrastructure, with critics warning that the measures could eventually raise the cost of accessing digital services in a country heavily dependent on mobile money and smartphone connectivity.
Kenya currently has one of Africa’s largest mobile money ecosystems, with millions of people relying on platforms such as M-Pesa for everyday transactions ranging from transport and shopping to rent payments and emergency support.
Critics argue that even when taxes are officially imposed on platforms or providers, the cost is often transferred to consumers indirectly through higher transaction charges or product prices.
The debate has also reignited painful memories of the Finance Bill 2024 demonstrations, where widespread public anger over proposed tax measures escalated into nationwide protests and forced the government to reconsider parts of the legislation.
More from Kenya
This year, Parliament has emphasized public engagement, with hearings and submissions conducted across several counties before today’s deadline.
The National Assembly is expected to conclude public hearings as the submission period lapses this evening.
Parliament has repeatedly stated that the process is meant to ensure citizens participate in shaping the country’s fiscal direction in line with constitutional requirements on public participation.
However, skepticism remains high among many Kenyans who feel increasingly strained by inflation, stagnant incomes and rising statutory deductions.
The timing of the Finance Bill debate is also politically sensitive because Kenya’s public debt is now nearing KSh13 trillion, with debt servicing consuming a significant share of government revenue.
Economists have repeatedly warned that the state’s growing appetite for taxes reflects mounting fiscal pressure as the government struggles to finance operations while meeting debt obligations.
Mbadi himself has previously acknowledged that Kenya’s fiscal space has narrowed significantly due to years of rapid debt accumulation.
The Treasury CS has now urged leaders to avoid “propaganda” and misinformation around the Finance Bill, insisting the government remains open to amendments and public input before the final version is passed by Parliament.
Still, as the clock ticks toward the close of public participation today, many Kenyans are left wondering whether their submissions will substantially shape the final outcome, or whether the country is once again heading into another politically charged battle over taxation and the rising cost of survival.
Ad
Ad