Mbadi Defends Finance Bill 2026, Accuses Opposition of Spreading False Claims

National Treasury Cabinet Secretary John Mbadi has accused the United Opposition of misleading Kenyans by spreading what he termed as false information about the Finance Bill 2026, saying some leaders are introducing non-existent clauses to incite public outrage.

Mbadi defended the proposed tax measures, insisting that the Finance Bill was carefully designed to reduce pressure on taxpayers while helping the government raise the revenue needed to support development projects and public services. He dismissed calls by opposition leaders for Kenyans to reject the bill in totality, describing the criticism as politically driven rather than factual.

The Treasury CS singled out opposition leaders, including Kalonzo Musyoka, accusing them of spreading misinformation about the contents of the bill currently before Parliament. According to Mbadi, critics of the proposed legislation have been making claims that are not reflected anywhere in the document under discussion.

He particularly dismissed allegations that the government plans to introduce taxes on land ownership through the Finance Bill, challenging opposition figures to point out the exact provisions they claim contain such proposals.

“Can Kalonzo Musyoka tell Kenyans the specific clause in the Finance Bill submitted to Parliament that mentions taxation on land, whether freehold or leasehold?” Mbadi questioned.

His remarks come at a time when public debate around the Finance Bill 2026 continues to intensify, with concerns emerging over several tax proposals expected to affect households and businesses. The government, however, maintains that the measures are necessary to strengthen revenue collection at a time when borrowing options are narrowing and fiscal pressure continues to mount.

Among the proposals attracting public attention is the introduction of a 25 percent excise duty on mobile phones and wireless communication devices. The proposal has generated criticism from Kenyans who depend heavily on mobile phones for banking, communication, and digital business transactions.

In defence of the move, Mbadi said the government intends to simplify taxation within the telecommunications sector. He explained that the proposed framework would remove complicated import taxes on mobile phones and instead impose an excise duty only when devices are activated for use.

“We are replacing the complicated system with a simpler one where phones enter the country tax-free, and the 25 percent excise duty is only charged once the device is activated,” Mbadi explained.

The Treasury CS also responded to concerns regarding the government’s earlier promise to reduce Pay As You Earn (PAYE) tax by five percent. Although the pledge did not make it into the Finance Bill 2026, Mbadi said Treasury officials are still reviewing the proposal.

He maintained that the National Treasury remains committed to striking a balance between easing the burden on taxpayers and ensuring the country remains financially stable.

Treasury projections indicate the government is targeting to raise approximately Ksh.3.63 trillion through measures contained in the Finance Bill, with lawmakers expected to continue debating the proposals before any final decision is made.