The National Assembly has passed the Finance Bill 2026, clearing the final parliamentary hurdle for the government’s proposed tax and revenue measures ahead of the 2026/27 financial year.
Members of Parliament approved the Bill at the Third Reading stage on Thursday evening through a formal electronic division vote conducted under Standing Order No. 70. A total of 122 legislators voted in favour while 40 opposed it, with no abstentions recorded.
Speaker of the National Assembly Moses Wetangula announced the outcome after a tense session in which the Bill was initially passed by acclamation before MPs demanded a formal division vote.
“The results of the vote are as follows: on the third reading of the Finance Bill, the ayes, electronic vote 103, manual vote 19, total 122. The nays, electronic vote 36, manual vote 4, total 40. Abstentions nil — the ayes have it,” Wetangula declared.
The Bill now heads to President William Ruto for assent, after which it becomes law and takes effect as the government’s fiscal framework for the coming financial year.
The legislation proposes amendments to several key statutes including the Income Tax Act, Value Added Tax Act, Excise Duty Act, Tax Procedures Act, Miscellaneous Fees and Levies Act, and the Stamp Duty Act. The government says the changes are designed to broaden the tax base, improve compliance, and boost revenue collection to fund its spending priorities.
Majority Leader Kimani Ichung’wah, who led the government’s defence of the Bill on the floor of the House, rejected accusations that the measures were punitive.
“This Bill is not imposing any taxation that may be harmful to Kenyans,” Ichung’wah said in Parliament.
Finance Committee Chairperson Kuria Kimani also dismissed opposition claims that the Bill introduces new levies on mitumba traders and mobile phone users, noting that Parliament had received over 100,000 public submissions across 13 counties before the committee proposed its amendments. Several contentious proposals were either dropped or revised in response to public concerns.
The opposition mounted a fierce last-ditch campaign to defeat the Bill. Former Deputy President Rigathi Gachagua, whose Democracy for Citizens Party (DCP) directed its affiliated MPs to vote against the legislation, described the vote as a defining moment for Kenya’s democracy.
“At the end of the day, the people of Kenya will know whether their elected representative supports measures that oppress them more or cares for them,” Gachagua said.
Wiper Patriotic Front leader Kalonzo Musyoka also warned lawmakers that voters would hold them accountable at the August 2027 general election.
“Make no mistake: history will record your vote,” Kalonzo said.
However, the vote was overshadowed by a striking statistic: of the National Assembly’s 349 members, only 162 turned up for what many analysts consider the most consequential parliamentary vote of the year. The 187 absentees — more than half of the House — drew immediate public criticism, with many Kenyans questioning whether elected officials are willing to be held accountable on matters that directly affect taxpayers.
With Parliament’s work done, the Finance Bill 2026 now awaits the President’s signature to become the law governing how the government will raise and spend public funds in the year ahead.
