NAIROBI, Kenya — The National Assembly has passed the Finance Bill, 2026, paving the way for President William Ruto to sign it into law as the government seeks to finance its Sh4.8 trillion budget for the 2026/27 financial year.
The Bill sailed through its Third Reading on Wednesday after securing 122 votes in favour against 40 opposed, underscoring the numerical strength of the Kenya Kwanza administration and its broad-based coalition in Parliament.
The vote came after weeks of intense political mobilisation, with supporters portraying the legislation as critical to sustaining government programmes and fiscal stability, while opponents argued that it would place additional pressure on households and businesses already struggling with high living costs.
The division vote exposed growing political realignments within Parliament. Legislators aligned with the government backed the Bill, while a bloc associated with impeached Deputy President Rigathi Gachagua voted against it.
Gachagua had publicly directed Members of Parliament affiliated with the Democracy for Citizens Party (DCP) to reject the Bill and demand a recorded vote, ensuring each legislator’s position was captured on the parliamentary record.
Amendments Ease Controversial Proposals
The legislation was passed after lawmakers adopted several amendments recommended by the National Assembly’s Finance and National Planning Committee following public participation hearings conducted across the country.
Some of the most contentious proposals initially contained in the Bill were either removed or revised after concerns were raised by businesses, civil society organisations, professional bodies, and members of the public.
The changes were intended to address criticism that some tax measures could increase the cost of doing business and worsen the burden on consumers.
Treasury officials have defended the Bill, arguing that it focuses on improving tax administration and strengthening revenue collection without introducing the kind of sweeping tax increases that triggered widespread opposition in previous years.
According to the government, the measures are necessary to support development projects, finance essential public services, reduce dependence on borrowing, and improve fiscal sustainability.
Political and Economic Test
The Finance Bill has emerged as one of the most significant legislative tests of the Kenya Kwanza administration’s economic agenda.
Supporters contend that increased efficiency in revenue collection is necessary to fund infrastructure, healthcare, education, and other public programmes while meeting debt repayment obligations.
Opponents, however, maintain that even revised tax measures could have negative consequences for businesses and ordinary Kenyans facing rising living costs and economic uncertainty.
The debate unfolded both inside and outside Parliament, with various stakeholders lobbying lawmakers to either support or reject specific provisions.
With parliamentary approval now secured, the Bill will be transmitted to President Ruto for assent. Once signed into law, it will provide the legal framework for implementing revenue measures contained in the government’s 2026/27 budget.
