Finance Bill fireworks: Opposition, government MPs clash over taxes

It was a day of drama, sharp exchanges and political brinkmanship in Parliament as MPs once again clashed over alleged hidden tax increases in the Finance Bill 2026 and its swift progression through the House.

Opposition MPs accused the government of sneaking in higher costs on key commodities through the back door, insisting that the Bill is punitive and introduces additional tax burdens on Kenyans.

Critics accused President William Ruto’s administration of disguising price increases in technical tax language, a move they described as mischievous and misleading.

For the second day running, supporters and opponents of the Bill engaged in heated exchanges, with critics arguing that due process was not followed during the Second Reading stage, where debate should have been fully exhausted before the House moved on.

At one point, proponents led by Majority Leader Kimani Ichung’wah walked out of the chamber to address the media over what they termed baseless and sensational claims made by their counterparts.

In response, opponents accused the government of running away from the truth, arguing that the hidden costs would deal a severe blow to Kenyans and describing the Bill as worse than the controversial Finance Bill 2024.

The opposition MPs, led by Deputy Minority Leader Robert Mbui, said it was the first time they had seen a Majority Leader rush to the media to explain proceedings on the floor of the House.

“Kenyans have seen that it reached a point where their arguments failed, and that is why they insisted that we stop debate on a matter as important as the Finance Bill, which deals with taxation measures for the country. It is a Bill that comes once a year, yet they wanted to stop debate when the Speaker’s screen was full of members waiting to contribute,” he said.

The opposition also claimed they had been ambushed by a motion to move the Bill to the next stage before their amendments could be adequately considered.

Kajiado North MP Onesmus Ngogoyo argued that the Bill had advanced without proper procedure, including a division vote to establish who supported or opposed it.

He further maintained that only a published Bill could be debated, noting that the committee report under consideration had not yet been published and was only tabled in the House on Tuesday.

“It is true they want to zero-rate the issue of mitumba, but what they are not telling you is that traders in that business will no longer be able to claim VAT, and that amounts to a direct increase in the cost of mitumba,” Ngogoyo said.

“The National Assembly is a place for debate. Why end debate under Standing Order 95 simply because you do not want us to continue discussing the matter and instead want us to vote? If members of the Executive represented here do not want debate, why bring the matter to Parliament?” he posed.

Bumula MP Jack Wamboka said they were disappointed that fewer than 20 members had contributed to the debate and accused South Mugirango MP Sylvanus Osoro of ambushing the process and introducing unrelated matters on the floor of the House.

“When you read it closely, this is a Bill that will make life more expensive for ordinary Kenyans, and it does so quietly. It is like cancer. At first, you may not notice it, but it slowly eats away at you. It hides price increases in technical tax language. Its trick is to remove essential goods from zero-rated VAT and place them under VAT-exempt status,” Wamboka said.

“It does not shout and it does not create headlines about VAT, but it raises the cost of living through the back door. It kills slowly and, ultimately, the mwananchi suffers,” he added.

Debate on the Bill at the Second Reading stage concluded during the morning session and is now set to proceed to the Committee of the Whole House and subsequently the Third Reading, a move that has heightened dissatisfaction among opposition members.

Following the heated morning session, a section of the House leadership led by Ichung’wah and Finance Committee chair Kuria Kimani addressed a press conference, dismissing what they termed propaganda intended to mislead Kenyans.

Kimani urged the public to read both the Bill and the committee report to understand the proposed amendments.

“On matters currently under public debate, there is the issue of mobile phones. The proposal in the Bill would have reduced the tax paid on phones, but we disagreed with the National Treasury on taxation upon activation.

“The current tax regime on phones remains unchanged. We are instead proposing systems that will ensure phones imported into the country without paying taxes are captured administratively, rather than burdening taxpayers with additional responsibilities,” Kimani explained.

He also maintained that extensive consultations had been undertaken on the issue of mitumba and insisted that no new taxes had been imposed, urging the public to disregard what he described as propaganda.

On rental income tax, which has also generated sharp divisions, Kimani similarly dismissed claims of increased taxation as misinformation.

“We want to assure the country that there is no increase in rental income tax. Under the current law, any tenant whose landlord is a non-resident is required to withhold tax and remit it to the Kenya Revenue Authority. The complication is that a tenant may not know whether the landlord is a resident or a non-resident.

“We are shifting that responsibility from the tenant back to the landlord. The non-resident landlord will continue paying rental income tax at the same rate applicable today. It is important to clarify these matters so that Kenyans are not misled by sideshows and innuendo,” he said.

Ichung’wah also maintained that the government remains cautious on taxation, mindful of the burden already borne by Kenyans, and reiterated that there were no changes to the Housing Levy.

“Passage of the Second Reading is not the end of the Bill. Kenyans have been misled into believing it has already been passed, yet amendments will still be considered during the Committee of the Whole House stage,” he said.