NAIROBI, Kenya, Jun 17 — The National Assembly adjourned prematurely on Tuesday after a heated and highly charged debate on the Finance Bill, 2026 descended into sharp exchanges over proposed tax measures and the credibility of public participation conducted by the Finance and National Planning Committee.
The House was debating the Bill at the Second Reading stage when a fierce confrontation erupted between Kiharu MP Ndindi Nyoro and Finance Committee Chairperson Kuria Kimani over claims that some public submissions supporting tax proposals may have been manipulated to justify new taxation measures.
Nyoro questioned the authenticity of submissions backing certain provisions, arguing that Kenyans would not voluntarily support measures that increase their tax burden.
“I have never seen a situation where, in public participation, a person volunteers information for them to be taxed more or to be subjected to hardship. This is the first time that we are seeing purported public participants,” Nyoro said.
His remarks triggered an immediate rebuttal from Kimani, who demanded a retraction, insisting the committee had relied on extensive nationwide input.
“Hon. Member for Kiharu must withdraw the statement he has made. He is saying that the public participants who came to the Finance Committee were manufactured people. We have tabled here the submissions of over 100,000 people across the country. I have no capacity to manufacture 100,000 people,” Kimani said.
The exchanges escalated after Nyoro doubled down, citing proposals such as a 15 per cent tax on second-hand clothes (mitumba), which he claimed reflected questionable submissions.
“The Committee itself purported to have engaged public participants who were, in fact, manufactured by them, and who proposed in their report a 15% tax on mitumba,” he said.
The sharp disagreements exposed deep divisions in the House over whether the Finance Bill introduces new taxes or merely reforms tax administration, despite government assurances that it seeks to ease compliance and broaden efficiency.
Embakasi South MP Julius Mawathe opposed the Bill, warning that it would burden ordinary citizens through additional levies on digital transactions.
“This Finance Bill introduces taxes on digital platforms. Any Kenyan who goes out there and makes a payment using M-Pesa will be taxed,” he said.
Kajiado Central MP Onesmus Ngogoyo also rejected the proposals, arguing that changes to tax classifications on motorcycles, electric bicycles, solar products and lithium items would ultimately increase consumer prices.
He further raised concerns over proposed excise duty changes affecting imported ceramics and sanitary ware, warning of rising construction costs.
However, Finance Committee members defended the Bill and the public participation process, insisting that extensive consultations shaped the final recommendations.
Homa Bay Town MP Peter Kaluma, presiding over the House as Speaker for the session, described the Bill as one of the most challenging fiscal proposals due to prevailing economic pressures.
“We were looking at how to ensure that tax administration is efficient without increasing taxes, because the tax burden on individuals is already very high,” Kaluma said.
He noted that the committee’s report had expanded to nearly 300 pages following nationwide public engagement, praising Kenyans for actively participating in the process.
Majority Leader Kimani Ichung’wah defended the Bill, dismissing claims of new taxes on rental income.
“There are no additional taxes on rental income. Rental income remains taxed at the usual 7.5 per cent,” he said.
Deputy Minority Leader Robert Mbui led opposition to the Bill, describing it as punitive and burdensome to citizens.
“I rise to oppose this draconian, punitive, knee-on-the-neck-of-Kenyans Finance Bill, 2026,” he said.
He also raised concerns over provisions allowing the Kenya Revenue Authority to use third-party data in assessing taxpayers, questioning fairness and transparency in tax enforcement.
Earlier, Kuria Kimani said the committee had reviewed extensive public submissions and introduced amendments to address stakeholder concerns.
Among the changes is the removal of a clause classifying software distribution as royalty income, which would have exposed distributors to unintended taxation.
The committee also rejected proposals to shift taxation of mobile phones from importation to activation, citing lack of infrastructure to support such a system.
As tensions escalated and competing factions clashed over the Bill’s impact, the House was forced to adjourn before completing the debate.
The Finance Bill, 2026 remains one of the most contentious legislative proposals in Parliament, with lawmakers divided over whether it expands the tax base or increases the burden on already strained households and businesses.
