Consumers are looking to benefit from key changes made to the Finance Bill, 2026, following approval of several proposals by the Members of Parliament.
The approved measures include provisions that are expected to ease cost pressures on households while supporting affordability in essential goods and services.
Analysis shows that several amendments proposed by the private sector were accepted by the committee, shielding consumers from costly products, for instance, medicine and mobile devices.
Among the biggest wins is the decision to retain the zero-rated VAT status for pharmaceutical inputs.
The Finance Bill had proposed moving the inputs from zero-rated to exempt status, a shift that manufacturers warned would have increased production costs by denying them the ability to recover input VAT.
The proposal would have ultimately translated into higher prices for medicines while weakening the competitiveness of local pharmaceutical manufacturers.
By retaining the zero-rated status, the committee has arguably safeguarded lower production costs, improved the competitiveness of local drug manufacturers and helped keep medicines affordable for patients.
The committee also rejected a proposal that sought to move the collection of excise duty on mobile phones from the point of importation to the point of device activation.
According to the Kenya Private Sector Alliance (KEPSA), the proposed change would have complicated tax administration, increased compliance costs and disrupted supply chains, with consumers likely to bear the additional costs through higher handset prices.
The committee further opposed plans to expand excise duty to locally assembled mobile phones and to increase the tax rate from 10 per cent to 25 per cent.
The decision is expected to encourage local assembly, preserve manufacturing jobs and keep smartphones within reach for more Kenyans, supporting wider digital inclusion.
The analysis also highlights reforms aimed at improving access to digital financial services.
The committee backed a technology-neutral taxation framework for payment gateways, settlement platforms and other digital financial services, a move expected to encourage innovation, reduce transaction costs and strengthen financial inclusion.
Beyond consumer-focused measures, the committee accepted proposals to provide businesses with more realistic tax return filing timelines, preserve VAT offsets that improve cash flow and moderate penalties linked to electronic tax systems.
It also upheld taxpayer appeal rights and moderated proposals on deemed dividend taxation, allowing businesses greater flexibility to reinvest profits.
According to KEPSA, the outcome demonstrates that structured engagement between the private sector and policymakers can help shape tax policy in ways that support both economic growth and consumer welfare.
The alliance says the adopted measures are expected to strengthen local manufacturing, lower compliance costs, promote investment and create a more predictable tax environment while protecting consumers from additional financial burdens.
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