Finance Act 2026: Key tax proposals dropped

Finance Act 2026: Key tax proposals dropped

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Among the proposals that did not make it into the Act were a tax on mobile phones at activation, a new tax on M-PESA money transfers, excise duty on bottled water, and excise duty on locally manufactured plastics.

President William Ruto signed the Finance Bill 2026 into law on June 23, making it the Finance Act 2026. Before it became law, several proposed tax measures were removed from the Bill, leaving a number of existing tax provisions unchanged.
Among the proposals that did not make it into the Act were a tax on mobile phones at activation, a new tax on M-PESA money transfers, excise duty on bottled water, and excise duty on locally manufactured plastics. A proposal to exempt imported second-hand clothes (mitumba) from tax was also dropped.
Other proposals removed from the Bill included allowing the Kenya Revenue Authority (KRA) to issue agency notices while tax appeals were pending before the High Court, as well as restrictions on the sale of high-strength ethanol. The changes followed consideration of the Bill before its enactment.
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