President William Ruto has signed the Finance Bill 2026 and Appropriation Bill 2026 into law, insisting there are no new taxes on M-Pesa, mitumba, rental income, or bottled water. Here's the full breakdown.
Ruto Signs Finance Bill 2026 Into Law, Insists "No New Taxes" on Kenyans
President William Ruto has officially assented to the Finance Bill, 2026, and the Appropriation Bill, 2026, signing both into law during a ceremony at State House, Nairobi. The President signed the Bill into law on Tuesday, June 23, bringing to an end the legislative process that began with its tabling in Parliament earlier this year.
According to the President, the two laws provide the legal framework and resources needed to finance national priorities, create jobs, strengthen livelihoods, and invest in the future under the Bottom-Up Economic Transformation Agenda.
"We Are Pursuing Tax Avoidance, Not Taxpayers" — Ruto Defends the Act
Ruto was keen to push back against criticism that the new law burdens ordinary Kenyans further. He maintained that the law does not raise taxes on ordinary Kenyans, but instead improves fairness by strengthening compliance, closing loopholes, and ensuring that every person and business pays what is lawfully due.
The President framed the law as targeting evasion rather than everyday earners, distinguishing between tax avoidance and taxpayers, offshore schemes and ordinary wages, and leakages versus livelihoods.
Clearing Up the "Misinformation"
A central part of the President's address was countering what he called misinformation around the Bill. He listed several taxes that he insists will not be introduced — among them, no tax on freehold land, no tax on mitumba, no changes to rental income tax, no tax on bottled water, no new tax on M-PESA or mobile money transactions, and no new tax on mobile airtime or data.
This comes despite earlier reporting that the Bill, as passed, contained provisions raising concern among landlords and tenants. Notably, landlords and tenant groups had opposed a rental income tax hike from 7.5 percent to 10 percent through the bill, warning that the increase would be passed directly to tenants, worsening the housing affordability crisis. Whether the final assented version excludes this change, as the President now claims, is something Kenyans will be watching closely as implementation begins.
Business associations have also raised separate concerns. COFEK has moved to court challenging a proposed shift of the tax filing deadline from June 30 to April 30, warning the compressed window risks penalising compliant taxpayers. Gaming industry stakeholders have likewise pushed back, arguing that a proposed betting tax increase could drive users toward unregulated offshore platforms.
Where the Money Is Going
Beyond the tax debate, the President highlighted increased budgetary allocations to key sectors. Education has received the highest allocation in the budget, rising significantly from previous years, with similar increases recorded in health and agriculture funding. An additional Ksh21.5 billion has also been set aside specifically for fuel price stabilisation, aimed at cushioning Kenyans from volatile pump prices.
A Bill That Did Not Pass Quietly
The path to assent was far from smooth. The Bill was passed by the National Assembly on June 18 during its Third Reading, with only 162 out of 349 MPs participating in the final vote, while 186 lawmakers were absent from the crucial session entirely. Of those who voted, 122 MPs supported the Bill while 40 opposed it.
The vote itself was contentious. Members of President Ruto's side and the broad-based government coalition backed the Bill, against a camp led by allies of impeached Deputy President Rigathi Gachagua, who had directed his allied MPs to reject it and force a division vote to publicly record each legislator's position.
Political pressure to withhold assent also came from outside Parliament. Siaya Governor James Orengo had urged President Ruto to reconsider assenting to the Bill, arguing it was passed without meaningful participation from a majority of MPs. The President ultimately proceeded with assent despite these objections.
Timing That Raises Eyebrows
The assent ceremony took place just two days before planned nationwide demonstrations on June 25, commemorating victims of last year's anti-government protests — protests that were themselves largely fuelled by public anger over the Finance Bill 2024. The proximity of this year's signing to that anniversary has not gone unnoticed by political observers and civil society voices monitoring the government's fiscal direction.
The Bottom Line
With both the Finance Act 2026 and the Appropriation Act now law, alongside the earlier Supplementary Appropriation Act, the government has secured the legal and financial framework to run the 2026/27 fiscal year under a Ksh4.8 trillion budget. Whether Ruto's "no new taxes" assurance holds up against the lived reality of implementation — particularly around rental income and digital transaction levies — will be the real test in the months ahead.
Kenyans, as always, will be watching closely.