The National Treasury has assured Members of National Assembly Committee on Budget and Appropriation that the government will not introduce new tax rates in the upcoming 2026 Finance Bill.
John Mbadi the Cabinet Secretary for the Ministry said this when he appeared before the Committee that is chaired by Alego Usonga MP Sam Atandi to discuss the 2025/26 financial year Supplementary budget estimates 1.
Following his presentation on the Estimates, Kibwezi West MP Mwengi Mutuse asked the CS to highlight to the Committee the tax environment as the period for introduction of the 2026 Finance Bill approaches.
“In 2024, the country almost erupted because of the perception that we were increasing taxes but you have confirmed in your presentation that you have not introduced new taxes and you are exploring alternative ways to funding our public expenditure. What is your assurance in terms of the tax environment that we are likely to get post June 2026,” Mutuse asked.
Why Kenyan govt has no plan of introducing new taxes to Kenyans
The CS in his respond told the Committee that despite the fact that the base is yet to expand, they were not going to increase taxes.
He instead said they will push the Kenya Revenue Authority (KRA) to adapt to the first moving automation of revenue collection.
“I want to state that we are not looking at a possibility of increasing tax rates because there is no difference of this year and last year. Kenyans are the same and the rates are still the same. We are looking at the possibility of expanding the base,” the CS said.
According to CS Mbadi, one of the biggest challenges that they face is that the tax payers have gone digital yet they are still stuck at manual tax collection methods.
“I know this has been talked about a lot and the base is not expanding as expected but we are putting pressure on KRA and some changes must be seen in terms of revenue collection. Failure to which we must make reforms to adapt to the first moving automation of revenue collection,” Mbadi said.
Is Kenya prepared to face economic effects if Middle East conflict?
On the preparedness as a Country in terms of the on-going middle east war and hoarding of fuel by oil marketers, the CS told the Committee that the G-G arrangement that is contractual obligation and the companies that the government is dealing with are working round the clock to ensure that there is enough fuel in the country at the moment and in coming days.
“I wouldn’t say we are fully prepared for the war in Middle East because no one anticipated it especially us in Kenya. But those are the shocks that come abruptly like Covid. You have to adjust and deal with them. I know there is a whole government approach beginning with the most affected Ministry of Energy,” he said.
