National Treasury Cabinet Secretary John Mbadi has accused the United Opposition of introducing non-existent clauses into the Finance Bill 2026 to mislead and incite Kenyans against the proposed law.
Mbadi defended the Finance Bill, insisting that the government designed it to ease the tax burden on citizens. At the same time, he dismissed the opposition’s calls to reject the Bill in its entirety, describing the move as politically driven. Instead, he urged Kenyans and lawmakers to analyse the proposed legislation objectively.
Meanwhile, with opportunities to introduce new taxes shrinking and the country nearing its borrowing limit, the Treasury has intensified efforts to defend the Finance Bill 2026 as a key revenue-raising tool. Mbadi specifically criticised Kalonzo Musyoka and the United Opposition for allegedly spreading false claims about the Bill.
“Can Kalonzo Musyoka tell the people of Kenya the specific clause in the Bill before Parliament that mentions taxation on land, whether freehold or leasehold?” Mbadi posed.
In addition, the government has proposed a 25 percent excise duty on mobile phones and wireless networks, citing the rapid expansion of Kenya’s digital economy. However, the proposal has triggered public backlash, with many Kenyans expressing concern over the rising cost of communication, banking, and digital business transactions.
Mbadi defended the proposal, arguing that the government intends to simplify taxation in the telecommunications sector. “We are replacing all those complications with a simpler system. When you import the phone, you will not pay taxes immediately. Instead, the 25 percent excise duty will apply only when the phone is activated,” he explained.
However, Mbadi faced criticism over the government’s earlier promise to reduce Pay As You Earn (PAYE) tax by five percent, after the proposal failed to appear in the Finance Bill 2026.
Even so, he maintained that the Treasury had not abandoned the plan. “Although the proposal did not make it into the Finance Bill, our technical teams are still reviewing it. The National Treasury remains committed to maintaining a balanced fiscal framework that supports revenue mobilisation and economic sustainability,” Mbadi said.
Ultimately, the Treasury aims to raise Ksh 3.63 trillion through the tax measures contained in the Finance Bill 2026.
