President William Ruto has signed the Finance Bill 2026, making it law and enabling the implementation of the government’s financial plan for the 2026/27 fiscal year.
The President formalized the Bill on Tuesday, June 23, during a ceremony at State House, Nairobi, concluding the legislative process that began with its tabling earlier this year.
The National Assembly approved the Bill on June 18 during its Third Reading, after lawmakers voted to adopt the proposed measures.
Only 162 of the 349 MPs participated in the final vote, with 186 lawmakers absent from the session entirely. The 122 “Yes” votes consisted of 103 electronic and 19 manual, while the 40 “No” votes were 36 electronic and four manual.
This low turnout, one of the lowest since the controversial Finance Bill 2024, saw key supporters of fiscal justice, such as MP Ndindi Nyoro, absent.
The Bill has sparked intense debate among lawmakers, business groups, and citizens, with several clauses criticized for their potential impact on living costs and business operations.
Landlord and tenant groups oppose the rental income tax increase from 7.5 % to 10 %, warning that the 33 % hike will be passed to tenants, deepening the housing affordability crisis.
Business associations, including COFEK, have challenged the shift of the tax filing deadline from June 30 to April 30, arguing the compressed window could penalise compliant taxpayers.
Critics argue that taxing digital and merchant service fees could hinder Kenya’s cashless economy, and the proposed mitumba import tax threatens millions who rely on affordable second‑hand clothing.
Financial experts, citing a KPMG analysis, warn that treating undistributed profits as deemed dividends penalises reinvestment, while gaming industry stakeholders claim the 20 % betting tax will push users toward unregulated offshore platforms, reducing government revenue.
President Ruto signed the bill days before the anticipated Gen Z protest anniversary on June 25, issuing stern warnings against chaos, property damage, or any attempts to shut down the planned demonstrations.