The National Assembly Departmental Committee on Finance and National Planning wrapped up a week-long public participation initiative spanning 13 counties, collecting opinions from Kenyans regarding four major legislative proposals: the Sovereign Wealth Fund Bill, the Central Bank (Amendment) Bill, the Kenya Revenue Authority (Amendment) Bill, and the Finance Bill 2026.
At the Kiambu National Polytechnic (KINAP), community members, business leaders, farmers, and stakeholders convened to express their perspectives to the parliamentary committee. Among the presenters was Kiambu County Woman Representative candidate and High Court Advocate Phyllis Wangui, who voiced apprehensions about various tax measures in the Finance Bill 2026 and their effects on ordinary citizens.
Wangui urged Parliament against implementing new taxes on digital and financial transactions, asserting that such actions could jeopardize Kenya’s standing as a pioneer in digital innovation and financial inclusion.
Citing examples from nations like Tanzania, Ghana, and Uganda, she highlighted that previous increases in digital transaction taxes had led to substantial reductions in transaction volumes.
“Kenya has been at the forefront of digital transactions and innovation. Young people are generating employment and conducting commerce through digital platforms. Any rise in transaction costs could impede our advancements and discourage digital adoption,” she informed the committee.
She encouraged legislators to thoroughly evaluate the proposed 16 percent Value Added Tax on financial transactions, cautioning that the financial burden would likely be transferred to consumers via increased transaction fees.
The legal professional also emphasized issues affecting agriculturalists, especially those engaged in poultry and dairy farming. Addressing proposed modifications related to animal feed inputs, Wangui contended that shifting from the current zero-rated tax status to a VAT-exempt system might inadvertently elevate production expenses.
She observed that Kiambu County continues to rely substantially on agriculture and that farmers are already facing challenges with expensive inputs.
“Animal feeds persist as one of the primary obstacles for poultry and livestock farmers. Any tax modifications should focus on decreasing expenses, not raising them. Preserving zero-rating would offer more substantial relief to farmers,” she stated.
Wangui additionally challenged proposals that mandate approvals from the Cabinet Secretary before specific exemptions can be approved, characterizing the procedure as cumbersome and likely to postpone advantages meant for farmers.
Beyond agriculture, she urged policymakers to develop more strategic incentives for local investors and small and medium-sized enterprises (SMEs), contending that recent Finance Bills have concentrated more on attracting foreign investment than fostering domestic enterprises.
She identified escalating operational costs, costly business permits, and growing fuel prices as significant hurdles confronting entrepreneurs nationwide.
“While the government aims to broaden the tax base and enhance revenue collection, it must also establish conditions that enable businesses to endure and thrive. SMEs require specific relief measures to maintain competitiveness,” Wangui remarked.
She also suggested implementing tax refund incentives for international tourists, similar to systems adopted in locations like Dubai. In her view, enabling visitors to receive tax refunds on specific purchases could stimulate tourism expenditure and augment revenues for local businesses reliant on this sector.
As deliberations continued, Wangui expressed concerns about the public participation process itself, noting confusion arising from numerous versions of the Finance Bill circulating among the public.
She contended that the government and National Treasury bear the responsibility to deliver clear, simplified, and current information on proposed tax measures.
“There is considerable distrust because many people are uncertain which version of the Finance Bill is under consideration. The government must release the most recent version and present it in a simplified format that average citizens can readily comprehend,” she stated.
She advocated for the creation of a “Mwananchi Finance Bill,” resembling the simplified citizens’ budget regularly issued by the National Treasury, to render complex tax proposals more understandable to the public.
In Wangui’s assessment, confusion regarding proposals impacting mobile phone taxes, financial transactions, animal feeds, and agricultural inputs has generated apprehension among citizens who dread increased living expenses and business costs.
She additionally criticized the decision to merge discussions on the Sovereign Wealth Fund Bill with the Finance Bill, asserting that the proposed sovereign fund raises distinct and extensive issues related to public finance management, accountability, auditing, and the administration of public resources.
“The Sovereign Wealth Fund Bill represents a substantial proposal that warrants separate public engagement. It raises fundamental questions about the management of public resources and should be addressed independently to provide citizens adequate time to understand and participate effectively,” she emphasized.
The Finance and National Planning Committee reassured participants that all feedback submitted during the nationwide public participation exercise would be taken into account before the bills are presented for deliberation and potential amendments in Parliament.
The committee’s public hearings occur during a period of elevated public interest in the Finance Bill 2026, with stakeholders from diverse sectors closely observing proposals that might influence taxation, business operations, agriculture, digital transactions, and government revenue collection.
As consultations proceed, legislators confront the challenge of balancing the government’s revenue requirements with public apprehensions regarding escalating living expenses, business viability, agricultural productivity, and economic expansion.