Parliament Invites Public Views as Controversial Finance Bill 2026 Targets Phones, Mitumba and Digital Assets
The National Assembly has formally invited Kenyans and stakeholders to submit their views on the proposed Finance Bill 2026, setting the stage for what is expected to be a heated national debate over new tax measures targeting mobile phones, second-hand clothes, and digital assets.
In a notice issued by the Clerk of the National Assembly, Parliament said the public participation exercise is being conducted in line with Article 118(1)(b) of the Constitution, which requires citizens to be involved in the legislative process before laws are passed.
The move comes amid growing criticism from members of the public, civil society groups, digital rights activists and traders who argue that some of the proposed measures could increase the cost of living and hurt Kenya’s digital economy.
“In compliance with Article 118(1)(b) of the Constitution and Standing Order 127(3), the Clerk of the National Assembly hereby invites the public and stakeholders to submit memoranda on the Finance Bill (National Assembly Bill No. 26 of 2026) to the Departmental Committee on Finance and National Planning,” the notice stated.
The bill, sponsored by Molo MP and Finance Committee Chairperson Kuria Kimani, proposes sweeping amendments to several tax laws, including the Income Tax Act, the Excise Duty Act and the Road Maintenance Levy Act.
Among the most contentious proposals is the introduction of a 25 per cent excise duty on mobile phones for cellular and wireless networks, a move critics say could significantly increase smartphone prices and make digital access more expensive for millions of Kenyans.
The proposed levy has sparked concern among digital rights advocates who argue that the country risks reversing gains made in financial inclusion, online learning and digital innovation.
The bill also seeks to change how imported second-hand clothes — commonly known as mitumba — are taxed. Under the proposal, five per cent of the customs value of imported mitumba goods would automatically be treated as taxable income payable at the point of importation.
Mitumba traders and small-scale importers have already raised concerns that the changes could increase operational costs and ultimately push up clothing prices for ordinary consumers who rely heavily on affordable second-hand garments.
In another major shift, the bill proposes reducing the tax filing deadline by two months from June 30 to April 30, a measure that has triggered concern among businesses and tax consultants over compliance timelines.
The Finance Bill 2026 also targets Kenya’s rapidly growing digital economy through new taxation measures on proprietary digital platforms, payment systems and software distribution.
Under the proposed changes, payments associated with software use, digital services and platform operations could face additional tax obligations.
The legislation further introduces new provisions on virtual assets and virtual asset service providers, signalling the government’s intention to tighten oversight and reporting requirements within Kenya’s expanding cryptocurrency sector.
Other notable proposals contained in the bill include reducing corporate tax for non-resident companies from 37.5 per cent to 30 per cent, expanding capital gains taxation involving foreign ownership structures tied to Kenyan assets, and granting the Kenya Revenue Authority wider powers to generate pre-populated tax returns using electronic data systems.
Parliament has directed that written memoranda be submitted physically to the Office of the Clerk at Parliament Buildings in Nairobi or electronically through official parliamentary email addresses before May 25 at 5pm.
“Any written Memoranda on the Bill should indicate the name of the person/organisation submitting it and their contact details and should be hand-delivered to the Office of the Clerk, First Floor, Main Parliament Buildings, Nairobi or emailed to cna@parliament.go.ke and financecommittee@parliament.go.ke to be received on or before Monday, May 25, 2026 at 5pm,” the notice added.
The Finance Bill was officially published on May 6 and has since attracted intense public scrutiny.
The Law Society of Kenya, human rights groups and sections of the public have criticised several clauses in the bill, particularly the proposed taxes on phones, mitumba and digital assets.
The debate is also reviving memories of the nationwide protests witnessed during the passage of previous finance bills.
One of the most significant incidents occurred on June 25, 2024, when thousands of Gen Z protesters staged demonstrations across the country and breached Parliament buildings in opposition to the Finance Bill 2024, leading to deaths, injuries and widespread political tension.
With public anger already simmering online, the latest proposals are expected to trigger another fierce national conversation over taxation, the cost of living and the government’s revenue collection strategy ahead of the next financial year.
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