New Taxes in Finance Bill 2026 That Kenyans Will Pay

The government has introduced new tax proposals in the Finance Bill 2026 as it seeks to increase revenue collection in the coming financial year.

President William Ruto’s administration says the new measures could help the country raise an extra KSh 120 billion. The proposed taxes are expected to affect many Kenyans, especially mobile phone users, bettors, mitumba traders, and consumers of some everyday products.

According to the National Treasury, the Kenya Revenue Authority (KRA) is expected to collect KSh 2.985 trillion in taxes in the 2026/2027 financial year, up from KSh 2.784 trillion collected in 2025/2026.

Government Plans Bigger Revenue Collection

The Treasury says the country needs more revenue to support the proposed KSh 4.78 trillion budget approved by the Cabinet.

The government also plans to tighten the fight against tax evasion as part of efforts to improve revenue collection.

Treasury officials revealed that KRA has been given additional funding to support digital systems and improve tax collection across the country.

New Taxes Proposed in Finance Bill 2026

Here are some of the major taxes that could affect Kenyans if Parliament approves the Finance Bill 2026.

1. 25% Tax on Smartphones and Mobile Devices

One of the biggest proposals in the bill is a 25% excise duty on smartphones and communication devices.

The tax will reportedly be charged when a phone is activated for use instead of during importation or purchase.

If approved, the move is expected to increase the price of smartphones and other wireless devices in Kenya.

Many Kenyans could end up paying more for mobile phones, especially imported devices.

2. New Tax on Mitumba Goods

The government has also proposed a 5% tax on imported second-hand goods such as clothes, shoes, and other used products.

The tax would be charged at the point of entry before the goods are cleared at the port or border points.

If implemented, traders may transfer the extra cost to customers, making mitumba products more expensive for ordinary Kenyans.

3. Higher Taxes on Betting Winnings

Gamblers could also feel the impact of the new Finance Bill.

The Treasury wants a 20% withholding tax on betting winnings.

In addition, money deposited into betting accounts could also fall under taxable transactions, widening the tax base in the betting industry.

The government says the move is aimed at increasing revenue from the growing gambling sector.

4. Tax Increase on Plastic Products

The Finance Bill 2026 also proposes a 10% tax adjustment on plastic products.

The Treasury says the move is part of environmental protection efforts and climate change measures.

The bill also suggests tax changes on coal, alcohol, tobacco, and sugary products.

5. Excise Duty on Fruit Juices

Fruit juices and vegetable juices could become more expensive if the bill passes.

The proposed law introduces an excise duty of between KSh 14 and KSh 20 per litre depending on sugar levels.

Manufacturers may eventually pass the extra cost to consumers.

6. Tax Changes on Digital Platforms and Royalties

Companies involved in digital payments, financial technology, and online platforms could also face increased taxation.

The government wants to expand the definition of royalties so that more digital transactions and service fees can be taxed.

The Treasury is also planning stricter monitoring of cryptocurrency transactions through international information-sharing agreements.

Kenya’s 2026/2027 Budget

National Assembly Majority Leader Kimani Ichung’wah tabled the government’s budget projections for the 2026/2027 financial year.

The proposed budget stands at KSh 4.78 trillion, which is one of the biggest budgets in Kenya’s history.

To bridge the budget deficit, the government plans to borrow around KSh 1.1 trillion locally.

Many Kenyans are now waiting to see whether Parliament will approve the proposed taxes in the Finance Bill 2026.

Finance Bill 2026 makes for an interesting & fairly technical read both from a tax policy & administration standpoint.

A 🧵 on the 11 things that stand out from what we are seeing so far for me. pic.twitter.com/eLTeyOLq5s

— Julians Amboko (@AmbokoJH) May 2, 2026