Finance Bill 2026: CS Mbadi explains tax proposals, accuses opposition of misleading Kenyans

The government has accused a section of opposition leaders of misleading Kenyans over the proposed Finance Bill 2026, claiming they are spreading misinformation and inciting the public against the tax measures.

Speaking during a visit to several electronic shops within Nairobi’s Central Business District (CBD) and during a public baraza, Finance Cabinet Secretary John Mbadi sought to clarify key tax proposals contained in the bill, reassuring traders and members of the public that the measures are well-intended.

Mbadi spent much of Tuesday moving from one electronics shop to another within the CBD, seeking to clarify key tax proposals contained in the Finance Bill 2026.

He engaged traders directly in an effort to explain the proposed mobile phone activation excise duty and counter what he termed as widespread misinformation surrounding the proposal.

"Mbadi amependekeza kwa hii Finance Bill hii simu yako unaleta na Ksh.1,000 unaweka bila ushuru. Ile siku unauza ndio ushuru inaingilia…" said the CS.

While speaking during a public baraza at the iconic Jeevanjee Gardens, Mbadi accused sections of the opposition of deliberately distorting the contents of the bill for political gain.

He warned that such narratives risk fuelling unnecessary tension and anxiety among Kenyans.

"Ni ushuru moja inakatwa, hizi zingine zote haziko. Ni 25 per cent pekee. Sasa watu wengine wanasoma kwa haraka wanaona excise duty inatoka from 10 per cent inaenda 25 per cent," Mbadi said.

Under the proposed bill, the government seeks to introduce a 25 per cent excise duty on every mobile phone activated within Kenya, a proposal that has sparked debate among traders, consumers, and political leaders.

In what appeared to be a coordinated effort, upon resumption from recess, Members of Parliament took the opposition head-on, accusing the leaders of misleading the public by drawing parallels between the Finance Bill 2026 and controversial clauses contained in the Finance Bill 2024.

"Kenyans should not believe the disinformation and propaganda on social media," National Assembly Majority Leader Kimani Ichung’wah said.

National Assembly Minority Leader Junet Mohamed added, "There is serious misinformation going on around it. It is very important to tell Kenyans the truth. They are discussing clauses that are not in the Finance Bill."

"Let us take time to read and understand the Finance Bill. The CSs should go out and inform Kenyans to know what is in the Finance Bill," added Tharaka MP George Murugara.

Prime Cabinet Secretary Musalia Mudavadi, while in Murang'a County, dismissed claims that the Finance Bill 2026 seeks to impose taxes on leasehold and freehold land ownership.

“Sasa wewe mwanasiasa unataka Wakenya waende kwa streets wapigwe risasi kwa kudanganywa kwamba kuna mambo kama leasehold..." Mudavadi said..

The National Treasury is targeting to raise Ksh.3.533 trillion in revenue for the 2026/2027 financial year through measures aimed at widening the tax base and enhancing electronic and digital tax compliance.