Thursday, 4 June, 2026
As the Departmental Committee on Finance and National planning undertakes Public Participation across Counties on the Finance Bill 2026, a section of the team convened a consultative forum in Mbale today to expound on the provisions of the Bill as well as gather public views on its provisions.
Led by Kitui Rural Constituency MP Hon. David Mboni, the MP’s who were accompanied by Parliamentary technical staff engaged participants in a forum that was aimed to inform, and educate, as well as correct public misconceptions on the same.
“Debt is not a burden, most people owe money. The concern about futuristic thinking while Kenya is in debt, does not suffice.” Explained Hon. Mboni, when a participant expressed concerns about Kenya’s rising debt ceiling and the government’s continued plans for the next fiscal year.
Some of the proposals in the Bill that drew major interest from the participants included the provision for Excise Duty on Mobile phones to be charged upon Activation, and not upon importation.
Explaining that this relieves the seller of paying taxes on product with no guarantee of sale, and reduces the total cost of phones, Committee member Hon. Joseph Oyula explained that;
“Mobile Phones are currently subject to multiple domestic taxes and levies during importation, and this includes: 16% VAT, 10% Excise duty, 25% Import duty, 2.5% Import Declaration Fee, and 2% Railway Development Levy. “ he said.
Hon. Oyula expounded that “the proposal in the Finance Bill, 2026 does not introduce a new tax on Mobile Phones. The amendments simplify the existing structure by replacing the current framework with a single 25% excise duty collected upon activation of a phone.”
Also of interest, was the The Bill’s proposal that all persons supplying goods or services will now be required to issue invoices, with small scale traders in Vihiga showing reluctance to the suggestion.
“The proposal is aimed at improving record-keeping, enhancing tax compliance, and increasing transparency in business transactions. The proposal will enhance efficiency for small businesses.” Hon. Mboni re-assured.
The participants who spoke to the MPs also expressed concerns with KRA tax structures, claiming that they have been unaware that acquiring a KRA Pin automatically demands one to start paying taxes, subsequently leading to unwarranted tax arrears.
This discussion emanated from The Finance Bill, 2026, proposal to reintroduce a tax amnesty covering all tax liabilities accrued up to 31st December 2025.
Under the proposal, taxpayers who had already paid their principal taxes by 31st December 2025 will automatically qualify for a waiver of penalties and interest without making a formal application to the Kenya Revenue Authority (KRA).
The Committee also engaged Vihiga county residents on the following three proposed Bills:
The Sovereign Wealth Fund Bill (National Assembly Bills No. 7 of 2026) which seeks to establish the Sovereign Wealth Fund to achieve long-term fiscal sustainability and intergenerational wealth-sharing.
The Central Bank (Amendment) Bill (National Assembly Bill No. 27 of 2026) that seeks to strengthen the statutory framework governing liquidity support by the Central Bank by distinguishing routine monetary policy operations. The Bill also seeks to provide legal clarity on the scope and limits of the Bank’s intervention powers and to establish prudential safeguards.
The Kenya Revenue (Amendment) Bill (National Assembly Bill No. 28 of
2026) which seeks to clean up the tenure of the chairperson and members of the KRA Board.
Tomorrow the MPs will undertake a similar exercise in Siaya County.