Nairobi: Government Spokesperson Isaac Mwaura has dismissed widespread claims surrounding the Finance Bill 2026, saying several reports circulating on social media are misleading and do not reflect the actual proposals before Parliament. Speaking during a press briefing in Nairobi on Monday, Mwaura urged Kenyans to rely on the official version of the Bill published by the National Assembly and to participate in ongoing public consultations.
According to Kenya News Agency, Mwaura clarified that there is no motor vehicle circulation tax, no tax on bread, and no tax on mitumba as has been alleged. He encouraged Kenyans to focus on the official bill and submit their views through the public participation process. Mwaura emphasized the government’s goal of balancing revenue generation for development with reducing the country’s debt dependence.
He highlighted several proposals in the Finance Bill aimed at improving tax administration and encouraging investment. Proposed measures include tax exemptions on gratuity payments for employees with contracts of at least three years and the removal of double taxation on trusts. Additionally, reforms to regulate the scrap metal sector through a five per cent withholding tax on buyers are being considered.
The government is also proposing simplified tax filing timelines, tax exemptions on pension benefits paid to beneficiaries of deceased pensioners, and incentives to attract foreign investors. Mwaura mentioned enhancements such as increasing the duty-free allowance for arriving passengers from USD 300 to USD 2,000 and removing VAT on dialysis equipment to reduce healthcare costs. Furthermore, excise duty on bottled water would be removed to make clean drinking water more affordable.
In the education sector, Mwaura expressed concern over recent cases of unrest in schools, including the tragic fire at Tumishi Girls Academy that claimed 16 students and one parent. He called for a national conversation involving parents, teachers, religious leaders, and policymakers to address indiscipline among learners. Mwaura noted that incidents of school unrest, mob violence, and other forms of lawlessness indicate a broader erosion of societal values.
Mwaura confirmed government support for families affected by the Utumishi Girls Academy tragedy, providing Sh200,000 for funeral expenses and settling medical bills for injured students. All 72 injured students have been discharged from the hospital, and the government will cover mortuary fees and other funeral-related expenses.
On public health, Mwaura assured that Kenya remains free of Ebola despite regional outbreaks. He reported intensified surveillance, with over 77,000 travellers screened at 26 entry points and no confirmed cases in Kenya. Mwaura stated that 37 Kenyans are in quarantine as a precaution and 23 isolation facilities are on high alert. He urged the public to remain calm, practice hygiene, and rely on official government information.
Mwaura also highlighted Kenya’s international health cooperation, emphasizing the benefits of partnerships with global health agencies and development partners. Turning to foreign relations, he outlined gains from President William Ruto’s recent state visit to South Africa, including six memoranda of understanding in areas such as security cooperation and infrastructure development.
He welcomed South Africa’s decision to lift duties on Kenyan tea, coffee, and spices, describing it as a boost for Kenyan farmers and exporters. Mwaura discussed the national budget aligned with the Bottom-Up Economic Transformation Agenda, with significant allocations for agriculture, health, education, digital infrastructure, and national security. He reiterated the government’s commitment to transparency, public participation, and service delivery.
Mwaura concluded by urging Kenyans to work together to address challenges, support development, and safeguard the future of their children.
