NAIROBI, Kenya – People’s Liberation Party (PLP) leader Martha Karua has criticized proposed tax measures in the Finance Bill 2026/27, warning that they will place additional pressure on small-scale traders who rely on imported goods to sustain their businesses.
Speaking on Friday, Karua said thousands of traders operating in markets such as Gikomba and other trading centres across the country risk being burdened by taxes collected at the point of importation, long before they can make any sales.
“From Gikomba to markets across the country, thousands of traders import goods, create jobs, and support families,” Karua said.
The PLP Leader argued that while large corporations may have the financial muscle to absorb the additional costs, small traders often operate on thin margins and limited capital, making upfront tax payments particularly challenging.
“Now, the Finance Bill 2026/27 proposes collecting more tax at the point of importation, forcing many small traders to part with money long before they have made a single sale,” she said.
Karua warned that the proposed measures could push many traders into borrowing to finance imports, increasing debt burdens and threatening the survival of small businesses.
“For large corporations this may be an inconvenience, but for small traders it can mean taking loans, accumulating debt, and struggling to keep their businesses alive,” she said.
She called on lawmakers to reject what she described as punitive taxation and instead adopt policies that support entrepreneurs and small businesses.
“Reject punitive taxes, support local biashara and put wenye nchi first,” Karua said.
Her remarks add to a growing debate over the Finance Bill 2026, which has attracted criticism from opposition leaders and sections of civil society who argue that some of its proposals could increase the cost of doing business and ultimately be passed on to consumers. Karua has previously described the Bill as a reincarnation of the controversial Finance Bill 2024, saying it contains measures that Kenyans had already rejected.
The Finance Bill is being considered alongside the 2026/27 budget presented by Treasury Cabinet Secretary John Mbadi on Thursday.
The government says the proposed measures are aimed at enhancing revenue collection, reducing dependence on borrowing and supporting fiscal consolidation amid rising expenditure demands and public debt obligations.
The debate has revived memories of the 2024 Finance Bill, which triggered nationwide protests and intense public opposition before President William Ruto declined to sign it into law, saying the government had listened to the concerns raised by Kenyans.
Parliament is expected to continue receiving public submissions on the Finance Bill 2026 before lawmakers debate and vote on the proposals in the coming weeks.
