Kenya’s National Assembly is expected to conclude public participation hearings on the Finance Bill 2026 after the expiry of a two-week submission period that allowed wananchi, industry players and stakeholders to give their views on the proposed tax changes for the 2026/27 financial year.

The exercise was led by the Departmental Committee on Finance and National Planning in line with Article 118 of the Constitution, which requires Parliament to involve the public in legislative processes.The Finance Bill 2026 proposes amendments to several tax laws, including the Income Tax Act, VAT Act, Excise Duty Act and Tax Procedures Act.

One of the major proposals is the widening of the definition of royalties to cover payments linked to digital payment systems, software distribution and transaction platforms, a move aimed at increasing taxation within the digital economy and fintech sector.The Bill also proposes a 25 percent excise duty on mobile phones, which could push handset prices higher for consumers.Additional taxes and levies have been suggested on plastics, coal, vintage vehicles and tobacco products.

At the same time, virtual asset service providers dealing with cryptocurrencies and digital assets would be required to comply with stricter tax reporting obligations under the Virtual Asset Service Providers Act 2025.Another proposal would allow the Kenya Revenue Authority to generate pre-filled tax returns using data from electronic tax systems.

Changes affecting VAT treatment on electric mobility products, solar batteries, lithium-ion batteries and animal feed inputs could also increase production costs after some items are moved from zero-rated to tax-exempt status.

After reviewing all submissions, the parliamentary committee will prepare recommendations before MPs debate, amend or reject clauses in the Bill ahead of forwarding it to President William Ruto for assent.

The process is happening amid continued public sensitivity around taxation following the rejected Finance Bill 2024 protests and ongoing pressure on Kenya to improve revenue collection and manage public debt under its IMF programme.