Nairobi, Kenya; President William Ruto has signed into law the Finance Bill, 2026, and the Appropriation Bill, 2026, paving the way for the implementation of the government's budget and development agenda for the coming financial year.
The President said the newly enacted laws provide the legal framework and financial resources required to drive the country's transformation priorities, create employment opportunities, improve livelihoods, and invest in Kenya's future.
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| President William Ruto earlier today at State house Nairobi (Photo Courtesy) |
Speaking after assenting to the legislation at State House, Nairobi, President Ruto emphasized that the Finance Act, 2026, does not introduce any new taxes on Kenyans. Instead, he said the law focuses on enhancing fairness in the tax system by strengthening compliance measures, sealing loopholes, and ensuring that individuals and businesses pay taxes that are legally due.
According to the Head of State, the government's focus is on curbing tax avoidance and revenue leakages rather than increasing the tax burden on ordinary citizens.
"We are pursuing tax avoidance, not taxpayers; offshore schemes, not ordinary wages; and leakages, not livelihoods," President Ruto stated.
The President also sought to dispel what he described as widespread misinformation regarding the Finance Act. He clarified that the law does not impose taxes on freehold land, second-hand clothing (mitumba), bottled water, or locally manufactured packaging used for essential products.
He further assured Kenyans that there are no changes to rental income tax and no new taxes on M-PESA transactions, mobile money services, airtime, or mobile data.
At the same time, President Ruto highlighted key sectors that have received increased funding in the 2026/2027 national budget. Education received the largest allocation at KSh784 billion, a significant increase from KSh526 billion in 2022. The health sector has been allocated KSh175 billion, up from KSh132 billion, while agriculture funding has risen from KSh44 billion to KSh63 billion.
To shield consumers from fluctuations in global fuel prices, the government has also set aside KSh21.5 billion for fuel stabilisation measures.
The President noted that the budget reflects the government's commitment to investing in people, boosting productivity, and promoting shared prosperity across the country.
In addition to the Finance Act and Appropriation Act, President Ruto also assented to the Supplementary Appropriation Act, 2026, which authorizes additional government expenditure for priority programmes and emerging needs.
The signing of the three pieces of legislation marks a major milestone in the implementation of the government's economic agenda as the country enters the 2026/2027 financial year.
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