President Assents to Finance Act 2026 and Budget Laws, Prioritising Jobs, Education, Health and Economic Growth
By Nancy Mwikali/Business Reporter
The President today assented to the Finance Bill, 2026, the Appropriation Bill, 2026, and the Supplementary Appropriation Act, 2026, providing the legal framework and financial resources required to advance the Government’s transformation agenda, create jobs, strengthen livelihoods, and invest in Kenya’s future.
The President reaffirmed that the Finance Act, 2026, introduces no new taxes on Kenyans. Instead, the legislation focuses on enhancing fairness within the tax system by strengthening compliance, sealing revenue leakages, and ensuring that all individuals and businesses meet their lawful tax obligations.
“The Government is pursuing tax avoidance, not taxpayers; offshore schemes, not ordinary wages; and leakages, not livelihoods,” the President stated.
The President also dismissed widespread misinformation surrounding the Finance Act, clarifying that it does not introduce taxes on freehold land, mitumba (second-hand clothes), rental income, bottled water, M-PESA and other mobile money transactions, mobile airtime or data services, or locally manufactured packaging for essential products.
The 2026/27 Budget places significant emphasis on investments that directly impact citizens and drive economic growth. Education received the largest allocation at KSh784 billion, an increase from KSh526 billion in 2022. Funding for the health sector has risen from KSh132 billion to KSh175 billion, while agriculture has been allocated KSh63 billion, up from KSh44 billion in 2022.
To cushion Kenyans from fluctuations in global fuel prices, the Government has allocated KSh21.5 billion towards fuel stabilisation measures, among other interventions aimed at protecting households and businesses.
The President noted that the approved budget reflects the Government’s commitment to investing in people, productivity, and prosperity while ensuring sustainable economic growth and fiscal responsibility.
Fact Check: President Signs Finance Act 2026, Confirms No New Taxes on M-PESA, Mitumba, Airtime or Bottled Water
