National Assembly passes Finance Bill 2026 in 122-40 vote
By William Muthama, June 18, 2026The National Assembly has passed the Finance Bill 2026 at the Third Reading following a tightly contested vote held on Thursday, June 18, 2026, which saw 122 Members of Parliament vote in support, 40 vote against, and no abstentions.
The electronic voting process was conducted in accordance with Standing Order No. 70, though a few lawmakers who experienced technical difficulties were allowed to cast their votes manually.
The approval marks a key milestone in the government’s budget-making process for the 2026/27 financial year.
Key tax amendments introduced
The Finance Bill introduces targeted amendments to several key tax laws, including the Income Tax Act, Value Added Tax (VAT) Act, and the Excise Duty Act, among others.
According to its objectives, the Bill is designed to widen the tax base, strengthen compliance, and close existing loopholes in revenue collection systems. These measures are expected to support the Ksh 4.8 trillion national budget for the 2026/27 financial year.
The passage of the Bill followed days of intense debate in the House, marked by sharp political divisions, protests, and moments of confrontation among Members of Parliament.
Opposition legislators strongly opposed the Bill, chanting “Reject Finance Bill” during deliberations. They accused the government of introducing hidden taxes that would increase the cost of living for ordinary Kenyans.
Some MPs argued that the proposals would place additional financial pressure on households already grappling with rising economic challenges.
Government defends revenue measures
On the other hand, pro-government MPs, led by National Assembly Majority Leader Kimani Ichung’wah, defended the Bill, insisting that it does not introduce punitive taxes.
They argued that the measures are aimed at broadening the tax base, improving efficiency in tax collection, and sealing revenue loopholes rather than overburdening taxpayers.
The government side maintained that the reforms are necessary to support national development priorities and ensure sustainable financing of the budget.
Following its passage in the National Assembly, the Finance Bill 2026 will now be forwarded to the President for assent.
The Speaker of the National Assembly will formally present the Bill to President William Ruto under Article 115 of the Kenyan Constitution.
Once assented to, the Bill will become law and guide tax collection and fiscal policy for the 2026/27 financial year.