Babu Owino Raises Concerns Over Hidden Burdens in Finance Bill 2026
By News Desk
Embakasi East MP Hon. Babu Owino has raised concerns over several provisions in the Finance Bill 2026, warning that while the proposed law may not introduce the sweeping tax increases seen in previous years, it could still place a significant financial burden on ordinary Kenyans.
According to the legislator, the bill contains measures that may increase the cost of living and make it more expensive for businesses to operate, with the effects eventually being passed on to consumers.
Hon. Owino pointed to proposed changes affecting digital transactions and financial services, arguing that increased taxes and compliance requirements on payment systems, software platforms, and digital services could lead to higher transaction charges for millions of Kenyans who rely on mobile money and electronic payments.
He further noted that proposals affecting payment processing services could make banking and mobile money transactions more expensive, particularly hurting small traders and entrepreneurs who depend on digital platforms to run their businesses.
The MP also expressed concern over tighter tax compliance requirements for businesses. He warned that reducing the timeline for filing tax returns could increase administrative costs for small and medium-sized enterprises, exposing them to penalties and financial strain.
Additionally, Hon. Owino cautioned that businesses facing higher operating costs may ultimately transfer those expenses to consumers through increased prices of goods and services, worsening the economic pressures already facing many households.
The legislator further questioned proposals granting the Kenya Revenue Authority broader powers under the General Anti-Avoidance Rule (GAAR), saying the measures could create uncertainty among investors and businesses despite the government’s intention to curb tax evasion.
While acknowledging that Parliament rejected several controversial proposals following public participation and stakeholder engagement, Hon. Owino maintained that Kenyans should remain vigilant and closely examine the remaining provisions in the bill.
“The real concern is not whether there is a new tax rate. The concern is whether the changes being introduced will make life more expensive for ordinary citizens through higher transaction costs, increased business expenses, and rising prices of essential goods and services,” he stated.
The Treasury has maintained that the Finance Bill 2026 is aimed at improving revenue collection and sealing tax loopholes rather than imposing new taxes. However, Hon. Owino insists that lawmakers must ensure that efforts to raise revenue do not come at the expense of struggling households and small businesses.
