Treasury Cabinet Secretary John Mbadi has ruled out the introduction of new taxes in the upcoming Finance Bill 2026, signaling a shift in the government’s revenue strategy.
Instead of increasing the tax burden, the government plans to focus on improving efficiency within the Kenya Revenue Authority (KRA) to boost revenue collection. The move comes after strong public resistance to previous tax hikes, particularly the protests witnessed in 2024 over the Finance Bill.
Mbadi emphasized that the government will prioritize better tax compliance and sealing revenue leakages rather than introducing additional taxes. This includes expanding the tax base and ensuring that all eligible taxpayers contribute fairly.
The approach aligns with broader fiscal plans aimed at reducing reliance on borrowing while maintaining government spending. Officials say improving KRA systems and enforcement mechanisms could help increase revenue without placing extra pressure on citizens.
At the same time, the government is exploring tax relief measures, including proposals to ease the burden on low-income earners. Mbadi has previously indicated plans to reduce certain tax rates and potentially exempt some income brackets from taxation altogether.
The shift reflects lessons learned from past public backlash, with the government now opting for a more cautious approach to taxation.
While the promise of no new taxes may come as relief to many Kenyans, the success of the plan will largely depend on how effectively KRA can improve compliance and close existing gaps in revenue collection.
Instead of increasing the tax burden, the government plans to focus on improving efficiency within the Kenya Revenue Authority (KRA) to boost revenue collection. The move comes after strong public resistance to previous tax hikes, particularly the protests witnessed in 2024 over the Finance Bill.
Mbadi emphasized that the government will prioritize better tax compliance and sealing revenue leakages rather than introducing additional taxes. This includes expanding the tax base and ensuring that all eligible taxpayers contribute fairly.
The approach aligns with broader fiscal plans aimed at reducing reliance on borrowing while maintaining government spending. Officials say improving KRA systems and enforcement mechanisms could help increase revenue without placing extra pressure on citizens.
At the same time, the government is exploring tax relief measures, including proposals to ease the burden on low-income earners. Mbadi has previously indicated plans to reduce certain tax rates and potentially exempt some income brackets from taxation altogether.
The shift reflects lessons learned from past public backlash, with the government now opting for a more cautious approach to taxation.
While the promise of no new taxes may come as relief to many Kenyans, the success of the plan will largely depend on how effectively KRA can improve compliance and close existing gaps in revenue collection.
