NAIROBI, Kenya- People’s Liberation Party (PLP) leader Martha Karua has criticized the Finance Bill 2026, arguing that it is built on the same tax-driven approach that triggered widespread public opposition and protests in 2024.
Speaking during a radio interview on Friday, Karua said that the proposed legislation would increase the cost of living by imposing taxes on sectors whose costs are ultimately passed on to consumers.
“The Finance Bill 2026/27 is built on the same thinking Kenyans rejected in 2024,” Karua said.
She argued that proposed tax measures affecting internet service providers, landlords and businesses would inevitably translate into higher prices for ordinary Kenyans through increased rent, internet costs and the overall cost of goods and services.
“The current bill is taxing internet providers, landlords and businesses. These costs are clearly being passed on to ordinary Kenyans through higher rent and a higher cost of living,” she said.
Karua questioned why the government was pursuing fresh tax measures despite the public backlash that greeted the Finance Bill 2024, which was eventually withdrawn following nationwide protests led largely by young Kenyans.
“Kenyans spoke clearly in 2024. Why is the government ignoring the will of the people?” she posed.
The PLP leader called on Kenyans to oppose what she termed punitive taxation and instead push for a budget framework that prioritizes citizens’ welfare.
“We must reject punitive taxation and demand a budget that puts Wenye Nchi first,” Karua said.
Her remarks come as Parliament considers the Finance Bill 2026 alongside the 2026/27 national budget proposals unveiled by the National Treasury.
The Bill seeks to raise additional revenue to fund government expenditure and support fiscal consolidation efforts amid mounting public debt and increasing demand for public services.
The debate has revived memories of the Finance Bill 2024, which sparked unprecedented nationwide demonstrations.
The protests culminated in the storming of Parliament on June 25, 2024, forcing President William Ruto to decline signing the legislation into law after days of public pressure.
He later announced that the government would withdraw the Bill, saying “the people have spoken.”
Opposition leaders and civil society groups have since maintained close scrutiny of subsequent finance bills, warning against measures they say place a disproportionate burden on households already grappling with a high cost of living.
Supporters of the current proposals, however, argue that additional revenue is necessary to finance development programmes and reduce reliance on borrowing.
The Finance Bill 2026 is expected to face intense public debate in the coming weeks as lawmakers continue receiving submissions from stakeholders and members of the public before its final consideration in Parliament.
-Budget Highlights-
Treasury Cabinet Secretary John Mbadi presented a Sh4.8 trillion budget for the 2026/27 financial year, describing it as a plan aimed at stabilizing the economy, reducing reliance on borrowing and sustaining growth.
The budget prioritizes education, health, infrastructure, social protection and affordable housing while seeking to narrow the fiscal deficit.
Education emerged as the biggest winner, receiving KSh 784.5 billion. The allocation will fund teachers’ salaries, basic education, junior secondary schools, university funding and the Higher Education Loans Board (HELB). The government also set aside funds to employ 20,000 intern teachers on permanent and pensionable terms from January 2027.
The health sector received Sh175.5 billion to support the rollout of Universal Health Coverage under the Social Health Authority.
The allocation includes funding for primary healthcare services, treatment of chronic and critical illnesses, and programmes targeting HIV/AIDS, malaria and tuberculosis.
Housing and urban development also featured prominently in the budget, with Sh138.2 billion allocated to the sector.
Of this amount, Sh50 billion will support the Affordable Housing Programme, which the government says will continue creating jobs while helping address the country’s housing deficit.
The government increased funding for social protection programmes, allocating billions of shillings for cash transfers to elderly persons, support for vulnerable children and youth empowerment initiatives.
Treasury said the allocations are intended to cushion vulnerable households from economic shocks and rising living costs.
Infrastructure and energy projects remain a key focus, with funding directed toward rural electrification, expansion of the national grid and ongoing transport projects.
The government says these investments are critical for boosting productivity and supporting economic growth across the country.
Counties are set to receive Sh420 billion as their equitable share of national revenue, alongside additional allocations for devolved functions. Treasury said strengthening devolution remains a priority in improving service delivery at the grassroots level.
One of the biggest concerns highlighted in the budget is the cost of servicing Kenya’s public debt. More than Sh1.5 trillion has been allocated to debt repayment and related obligations, underscoring the pressure debt continues to place on public finances and limiting the government’s spending flexibility.
