NAIROBI, Kenya — President William Ruto has sought to reassure Kenyans over the newly enacted Finance Act 2026, dismissing what he termed as misinformation surrounding the legislation and insisting that the government has not introduced several controversial taxes widely discussed in public debate.
Speaking on Tuesday during the signing of the Finance Bill 2026 into law, President Ruto dedicated much of his address to countering claims that the legislation would impose new taxes on mobile money transactions, second-hand clothing, freehold land, bottled water, mobile phones, and rental income.
The President’s remarks come two days before planned June 25 commemorations and protests linked to the 2024 anti-government demonstrations, which have intensified scrutiny of government taxation policies.
“Contrary to propaganda, misinformation, disinformation, and fake news, the Government did not propose the taxes that were widely alleged. There was no proposal to introduce taxes on freehold land, mitumba, rental income tax, bottled water, M-Pesa or mobile money,” Ruto said.
“The money you send to your family, your business, or your friends will move tomorrow just as it always has.”
The Head of State portrayed his administration as one focused on protecting ordinary Kenyans while broadening the tax base through improved compliance and enforcement against tax evasion.
“We are pursuing tax avoidance, not taxpayers; offshore schemes, not ordinary wages; and leakages, not livelihoods,” he said.
The signing marked the earliest assent of a Finance Bill during Ruto’s presidency before June 25. In both 2023 and 2025, the Finance Bills were signed after June 25, while in 2024, the President declined to assent to the legislation following widespread nationwide protests.
Beyond defending the law, President Ruto highlighted several measures contained in the 2026/27 budget aimed at easing the cost of living and supporting key sectors of the economy.
Among the measures is an increase in import duty on sugar from Sh7.5 to Sh40 per kilogram, which the government says is intended to shield local sugarcane farmers from unfair competition. He also announced that mortgage tax relief benefits would now extend beyond commercial banks to include microfinance institutions.
The President further sought to appeal to Kenyans living abroad by announcing a substantial increase in the duty-free allowance for personal effects and gifts brought into the country by returning travellers, from Sh39,000 to Sh260,000.
Education also featured prominently in his address. Ruto said the government plans to recruit 24,000 teachers and convert another 20,000 teachers to permanent and pensionable terms in the next financial year.
He noted that funding for the Higher Education Loans Board (HELB) has risen significantly, from Sh15 billion in 2022 to Sh56.7 billion in the 2026/27 fiscal year.
On healthcare, the President announced an allocation of Sh129.1 billion towards primary healthcare services under the Social Health Authority (SHA), saying the funding is intended to ensure Kenyans can access outpatient treatment without being charged at accredited facilities.
“As a result, no Kenyan should pay for outpatient services at dispensaries, health centres and sub-county health facilities in any SHA-accredited public, private or faith-based hospital,” he said.
The President added that the government is considering legal measures to prohibit health facilities from charging patients for outpatient services covered under the scheme.
In agriculture, he pointed to Sh20 billion allocated for fertiliser and seed subsidies expected to benefit 6.5 million farmers, while the National Youth Service has been allocated Sh12.4 billion to facilitate the recruitment of 10,000 young people.