Treasury Cabinet Secretary John Mbadi has moved to calm growing public anxiety over the Finance Bill 2026 after a wave of online claims alleged the government planned to introduce fresh taxes on cryptocurrency, bread, mobile money services and digital content creators.
Speaking during a press briefing on Monday, Mbadi said several reports circulating on social media had misrepresented the contents of the proposed law, insisting the bill does not impose many of the controversial taxes being discussed online.
Treasury Clarifies Crypto Tax Claims
Mbadi explained that the Finance Bill does not introduce a new tax on cryptocurrency or virtual assets but instead seeks to regulate the rapidly growing sector through reporting and record-keeping requirements similar to those applied in traditional financial systems.
“The rapid growth of digital and virtual asset transactions has created a gap within the existing legal framework due to the absence of clear reporting obligations,” Mbadi said.
According to the Treasury, the proposals are aimed at improving accountability and aligning the digital asset space with existing financial regulations rather than creating punitive taxation measures.
No New Tax on Bread or Digital Creators
The CS also rejected claims that the government plans to impose Value Added Tax (VAT) on bread or introduce a fresh five percent withholding tax targeting digital content creators.
Mbadi maintained that such proposals are not included in the current Finance Bill, dismissing viral social media posts suggesting otherwise as misleading.
The clarification comes amid rising public concern over the cost of living and fears that new taxes could further strain households already grappling with high fuel and commodity prices.
Treasury Denies Access to M-Pesa Transactions
On concerns surrounding privacy and mobile money surveillance, the Treasury assured Kenyans that the government will not gain unrestricted access to private M-Pesa accounts or phone data under the proposed law.
“Existing data protection and privacy laws remain fully in force,” the Treasury stated, adding that the Kenya Revenue Authority cannot access personal M-Pesa statements without following legal procedures.
Mbadi also addressed concerns over the proposed 25 percent excise duty charged upon mobile phone activation, saying it is not a new levy but a consolidation of existing taxes into a simplified structure.
Controversial Proposals Withdrawn After Public Pressure
The Treasury further confirmed that several controversial proposals had already been dropped following public consultations and stakeholder feedback.
Among the withdrawn measures are plans to raise residential rental income tax from 7.5 percent to 10 percent and proposals targeting imported mitumba clothing.
The government also abandoned changes affecting ceramic sanitary ware taxation and excise duty rules on East African imports.
The Finance Bill 2026 is currently undergoing parliamentary review before debate in the National Assembly, with lawmakers expected to consider public submissions and recommendations from the Finance and National Planning Committee.
The Treasury’s latest clarification is seen as part of efforts to counter growing misinformation and ease public tension as debate around the Finance Bill intensifies across the country.
