By Joshua Otieno | May 26, 2026
NAIROBI, KENYA — Government Spokesman Isaac Mwaura has dismissed growing concerns surrounding the Finance Bill 2026, terming claims circulating online as misleading, inaccurate, and politically motivated misinformation.
Speaking during a press briefing at the Harambee Annex on Tuesday, May 26, Mwaura accused critics of spreading false narratives about the proposed tax measures, warning that the misinformation risks causing unnecessary panic among Kenyans.
Mwaura urged citizens to independently read the Finance Bill instead of relying on what he described as “negative energies, misinformation and disinformation” dominating public discussions online.
Among the claims dismissed by the Government are allegations that the bill seeks to introduce a motor vehicle circulation tax, impose new taxes on Mitumba clothes, increase rental income taxes, and introduce fresh levies on mobile phones and digital financial transactions.
According to Mwaura, several controversial proposals initially under discussion were either dropped or significantly revised before publication of the bill by the National Treasury.
He clarified that proposals to increase residential rental income tax from 7.5 percent to 10 percent were abandoned, alongside plans to introduce a simplified tax framework targeting Mitumba traders.
The Government Spokesman also denied reports that bread would attract VAT or that the Kenya Revenue Authority would gain unrestricted access to personal mobile money transactions. He maintained that privacy and data protection laws remain fully operational and that no Kenyan’s financial information would be accessed outside legal procedures.
Addressing concerns over smartphones and digital services, Mwaura explained that the proposed excise duty is not a new tax but rather a consolidation of already existing taxes into a simplified framework designed to streamline digital taxation without increasing costs for consumers.
The Government also defended proposed regulations targeting virtual asset service providers, including cryptocurrency operators, saying the measures are intended to improve transparency and accountability within the fast-growing digital financial sector. According to Mwaura, operators dealing with virtual assets will only be required to maintain transaction records similar to those already maintained by banks and regulated financial institutions.
At the same time, Mwaura said the Finance Bill contains several relief measures intended to lower the tax burden on households while supporting critical sectors of the economy.
The proposed exemptions include VAT-free dialysis equipment to improve kidney treatment services, tax relief on agricultural inputs and animal feed production, incentives for local pharmaceutical manufacturing, and VAT exemptions on transporting sugarcane from farms to factories.
The bill also proposes VAT exemptions on solar batteries, electric buses, electric bicycles, and bioethanol vapor stoves as part of efforts to promote clean energy and environmental sustainability.
Additionally, public-private partnership infrastructure projects are set to benefit from VAT exemptions aimed at attracting investment, creating employment opportunities, and accelerating national development projects.
Mwaura further highlighted proposed reforms targeting salaried workers, including changes to tax return filing deadlines to ease compliance requirements. If approved, individual tax return filing deadlines would move from June 30 to April 30, while Kenyans with no taxable income would be required to submit nil returns by January 31 each year.
