By Benadeta Mwaura - Reporter
Kenya, 18 June 2026 - The National Assembly on Thursday passed the Finance Bill 2026, clearing the way for the legislation to be transmitted to President William Ruto for assent after weeks of heated public debate over its potential impact on the cost of living.
The Bill sailed through its Third Reading with 122 Members of Parliament voting in favour and 40 opposing it after lawmakers adopted amendments proposed by the Departmental Committee on Finance and National Planning.
Its passage marks the final parliamentary stage of a legislative process that has dominated national discourse since the Treasury unveiled the proposals alongside the KSh4.82 trillion 2026/27 budget.
The legislation introduces changes to key tax laws, including the Income Tax Act, the Value Added Tax Act and the Excise Duty Act, with the government maintaining that the measures are necessary to improve tax administration, expand revenue collection and reduce the budget deficit.
However, several proposals have faced resistance from industry players, consumer groups and opposition lawmakers, who argue that some of the measures could increase the cost of doing business and place additional pressure on already strained households.
Among the contentious issues raised during debate were proposed changes affecting digital transactions, virtual assets, taxation of trusts and adjustments to Value Added Tax provisions. Opposition MPs also voiced concerns over clauses they say could increase the tax burden on mobile money users and small businesses.
Debate on the Bill was marked by sharp exchanges in the House, with government allies defending the proposals as essential for financing public services and reducing reliance on borrowing, while critics accused the administration of pushing through measures that could worsen the cost-of-living crisis.
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The Finance and National Planning Committee had earlier reviewed submissions from the public and recommended amendments to some of the proposals following countrywide public participation hearings.
The Bill now awaits President Ruto's assent before becoming law and taking effect at the start of the new financial year on July 1.
Its implementation will be closely watched by businesses and households alike, particularly as Kenyans continue to grapple with high living costs, elevated fuel prices and growing concerns over the country's rising debt burden.
The outcome of the Finance Bill process is also expected to carry significant political implications ahead of the 2027 General Election, with both government and opposition figures framing the legislation as a key test of Parliament's responsiveness to public concerns.