President William Ruto has sought to calm public fears over the Finance Act 2026, insisting that the newly signed law does not introduce fresh taxes on mobile money transactions, airtime, data bundles, second-hand clothes or land.
Speaking at State House, Nairobi, on Tuesday after assenting to the Finance Bill 2026, Ruto dismissed widespread claims that Kenyans would face higher costs when sending or receiving money through mobile money platforms.
"There is no new tax on Mpesa or mobile money. The money you send to your family, business or friend will move tomorrow as it has always done," he said.
The President also rejected reports that the legislation introduces new taxes on mobile phones, airtime and internet data, blaming misinformation for fueling public anxiety over the bill.
“Contrary to propaganda, misinformation, disinformation and fake news, the government did not propose any taxes that were largely alleged,” Ruto said.
He further dismissed claims that the law targets second-hand clothing traders, landowners and water consumers.
“There is no proposal to introduce taxes on freehold land or any land for that matter. There was no proposal to introduce taxes on second-hand clothing or Mitumba,” he stated.
According to Ruto, the Finance Act 2026 is designed to improve tax administration rather than increase the burden on ordinary citizens. He argued that the government's focus is on improving compliance, sealing loopholes and ensuring taxpayers meet their legal obligations.
“Let me state clearly, this law does not raise taxes on ordinary Kenyans. Instead, it improves fairness by strengthening compliance, closing loopholes and ensuring that every person and business pays what is lawfully due,” he said.
“We are pursuing tax avoidance, not taxpayers, offshore schemes, not ordinary wages, and leakages, not livelihoods.”
The President revealed that Parliament subjected the bill to extensive public participation before approving it, receiving submissions from more than 170 organisations and over 100,000 Kenyans.
He added that the new law contains measures intended to support manufacturing, green energy investments and livelihoods. Among the incentives introduced are tax benefits targeting motorcycles, electric buses, electric bicycles, solar batteries and locally assembled mobile phones.
Ruto also announced a six-month tax amnesty programme that will waive penalties and interest on outstanding tax obligations, allowing taxpayers to regularise their affairs without additional charges.
In addition, mortgage tax relief previously available only through commercial banks has now been extended to borrowers using registered microfinance institutions.
“With my assent to the Finance Act 2026 and the Appropriation Act 2026, Kenya now has the legal and financial framework necessary to finance government programmes under the Bottom-Up Economic Transformation Agenda,” the President said.
The Finance Bill was passed by the National Assembly on June 18 during its Third Reading, although the final vote attracted one of the lowest turnouts in recent years.
Only 162 of the 349 MPs participated in the vote, while 186 lawmakers were absent. The bill sailed through after receiving 122 votes in favour against 40 opposed.
Despite the President's assurances, the legislation continues to generate debate among lawmakers, business groups and taxpayers.
Landlords and tenant lobby groups have criticised the increase in rental income tax from 7.5 per cent to 10 per cent, warning that the higher tax burden could be transferred to tenants through increased rent.
Meanwhile, consumer lobby groups and business associations have challenged several provisions in court, including plans to shift the tax filing deadline from June 30 to April 30.
Financial analysts have also raised concerns over clauses affecting retained company earnings and betting taxes, arguing that some measures could discourage investment and push consumers toward unregulated markets.
Ruto's signing of the Finance Act comes just days before the June 25 Gen Z protest anniversary, which is expected to attract demonstrations across parts of the country.
The President has warned against violence, destruction of property and attempts to disrupt business operations during the protests, while Interior Cabinet Secretary Kipchumba Murkomen has urged demonstrators not to "test the limits of police restraint" ahead of the planned commemorations.
