The National Assembly has passed the Finance Bill 2026, clearing the final parliamentary hurdle before it is presented to President William Ruto for assent.
The Bill was approved during its Third Reading after lawmakers voted 122 in favour and 40 against, reflecting strong backing from the Kenya Kwanza administration and its allies in Parliament.
The legislation is a key component of the government’s plan to finance the Sh4.8 trillion national budget for the 2026/27 financial year while strengthening domestic revenue collection.
Sharp Political Divide Emerges
The vote highlighted growing political divisions within Parliament, with legislators aligned to the government supporting the Bill while opposition members and allies of former Deputy President Rigathi Gachagua opposed it.
Ahead of the vote, Gachagua had urged Members of Parliament affiliated with the Democracy for Citizens Party (DCP) to reject the legislation and demand a recorded division vote to publicly capture each lawmaker’s position.
Despite the opposition, the government secured sufficient numbers to comfortably pass the Bill.
Lawmakers Amend Controversial Provisions
Before its passage, MPs adopted several amendments proposed by the National Assembly’s Finance and National Planning Committee following extensive public participation and stakeholder consultations.
Some proposals that had generated concern among businesses, civil society groups and professional associations were either revised or dropped altogether.
The changes were aimed at addressing fears that certain measures could increase the cost of doing business and place additional pressure on consumers already facing high living expenses.
The revised Bill is expected to strike a balance between raising revenue and protecting economic growth.
Treasury Defends Revenue Measures
Treasury officials have maintained that the Finance Bill focuses largely on improving tax administration and enhancing compliance rather than introducing major new taxes.
According to the government, the measures are necessary to support development programmes, fund essential public services and reduce reliance on borrowing.
Officials argue that stronger revenue collection will help finance infrastructure projects, healthcare services, education programmes and other government priorities while improving fiscal sustainability.
Bill Now Heads to State House
With parliamentary approval secured, the Finance Bill 2026 will now be forwarded to President Ruto for assent.
Once signed into law, the legislation will provide the legal framework for implementing revenue measures contained in the 2026/27 budget and guide government taxation policies over the coming financial year.
The Bill remains one of the most significant pieces of economic legislation for the Kenya Kwanza administration, with supporters viewing it as essential for maintaining fiscal stability, while critics continue to warn about its potential impact on households and businesses.
