Stakeholders Call for Strict Fiscal Accountability and Social Equity in Finance Act 2026
NAIROBI, Kenya, June 26 – The National Taxpayers Association (NTA) in collaboration with Oxfam on Wednesday 24 June 2026 convened a policy dialogue to scrutinize the inclusivity of Kenya’s evolving fiscal framework.
The engagement critically evaluated whether the country’s primary tax instruments including the National Tax Policy (NTP), the Medium-Term Revenue Strategy (MTRS) and the newly minted Finance Act 2026/27 are effectively advancing the principles of equity, fairness and inclusivity in Kenya’s tax system.
To achieve this Policymakers, implementers, civil society organizations, tax experts and accountability stakeholders deliberated on the alignment of the Finance Act 2026/27 and explored the implications of recent tax measures on revenue mobilization, debt sustainability, fiscal performance and social equity.
The National Tax Policy (2023) and the Medium-Term Revenue Strategy (2024/25–2026/27) have provided a strong foundation for building a fair, transparent and inclusive tax system with these frameworks emphasizing equity, accountability and public participation as central pillars of effective taxation.
Patrick Nyangweso, Chief Executive Officer, National Taxpayers Association (NTA) while speaking during the forum stated that true test of any policy lies in its implementation and Finance Bill/Act 2026/27 proposes amendments to several key tax laws, including the Income Tax Act, Value Added Tax Act, Excise Duty Act, Tax Procedures Act, Miscellaneous Fees and Levies Act and the Stamp Duty Act.
“The main aim of the Bill is to drive domestic revenue mobilization to Kes. 3.63 trillion for the FY 2026/27 budget through targeted administrative compliance, technological integration and a widened tax base”, said Mr. Nyangweso.
The Government projects total revenue for FY 2026/27 at Kes. 3.63 trillion (17.1% of GDP), up from the FY 2025/26 target of Kes. 3.32 trillion.
“The increase reflects the Government’s continued commitment to strengthening domestic revenue mobilization through enhanced tax administration, improved compliance and expansion of the tax base, while maintaining its position of not introducing broad-based tax rate increases”, He added.
Additionally, the revenue strategy is anchored on improving efficiency in revenue collection and leveraging digital systems to enhance compliance while urging the Kenya Revenue Authority to improve in simplifying their tax administration system and educateKenyans to understand their obligation in taxation process.
The forum presented a significant and timely platform to critically evaluate the extent to which these policy commitments are being translated into concrete legislative and fiscal measures and to assess their alignment with the broader objectives of equity, efficiency and inclusivity within Kenya’s tax system.
“It is an opportunity to move beyond revenue collection metrics and critically reflect on broader policy questions: Are our tax instruments reducing inequalities and achieving meaningful expansion of the tax base? Are we protecting the vulnerable populations while enabling investments?”
“Are we creating a tax environment that encourages compliance, trust and shared prosperity? And most importantly, are we ensuring that increased revenue mobilization translates into improved public service delivery?”
Mr. Nyangweso further added that the goal is to move beyond analyzing but influencing by ensuring that tax policy and legislation align more closely with the principles of fairness, transparency and inclusivity, while strengthening fiscal justice and positioning taxation as a key instrument for inclusive national transformation.
“A fair and transparent tax system is not just about revenue, it is about legitimacy, social contract and the confidence citizens have in how public resources are raised and managed”.
The finance act 2026-2027 was signed into law by president William Ruto on Tuesday 23rd June 2026 officially turning it into law and paving the way for the implementation of the government’s financial plan for the 2026/27 financial year.
The Bill was passed by the National Assembly on June 18 during its Third Reading, after lawmakers voted to approve the proposed measures.
The National Taxpayers Association (NTA) expressed its gratitude to the National Assembly’s Finance and National Planning Committee, commending the lawmakers for their receptive approach during the public participation phase.
The association highlighted that all the policy recommendations they submitted during the public hearings were successfully incorporated into the final piece of legislation.
“This alignment marks a significant victory for civic engagement, demonstrating that robust public dialogue can meaningfully shape national fiscal policy to protect the interests of ordinary citizens”.
They called on the government and other regulators to ensure that the 4.8 trillion expenditure should be able to transform to the youth employment, create opportunities for business to thrive, Create opportunities so that they is more surplus by focusing on production should be able to enhance especially on stabilizing the micro, small and medium enterprises business environment.
“These sectors play a lot now when we ignore and leave a lot in formal sectors the way it has been previously then you see few kenyans are going to shoulder the burden when it comes to tax revenue”.
Further, they urge on more emphasis on the expenditure inefficient in a expenditure efficiency highlighting that when a government collects more from citizens and they don’t see the value for every shilling collected it builds a lot of public mistrust, especially with the government agencies must be addressed.
To address this is by enhancing transparency, By putting a lot of systems which would address public waste and also leakages.
“If you go on the ground, most Kenyans have no opportunity to access to clean water, struggling to pay their fees, to get quality health care services, struggling because of the depleted infrastructures with others struggling because of the depleted markets, and many many more.
“You have seen even our exports have really gone down, When exports go down, then we remain a consumption market”.
This Finance Act has offered opportunities for Kenyans to remain competitive within the global market so that we earn more for an exchange.
“We need to focus on a working economy by ensuring that this expenditure is really real, so that constructive citizens’ engagement is realized so that we don’t engage just citizens during budget formulation process”.
“We really want a situation where even policymakers, the implementers, ministries, MDAs engage the public to understand this hard-earned,what is it meant for, is it going to transform their lives, is it going to really create opportunities for our youth to be very productive”.
As devolved units enter the final stages of drafting their local finance bills, the National Taxpayers Association (NTA) has cautioned county leadership against over-taxing citizens.
They urge counties to align their revenue-raising measures with the national fiscal framework, warning that introducing a fresh wave of local levies and fees in a desperate bid to boost own-source revenue will only crush small businesses and overburden a heavily strained public.
“When they come up their respective county acts, they should harmonise with the national document, we do not want see county governments go on to burden taxpayer”, stated Mr. Nyangweso.
Addressing the shared responsibilities between the two levels of government, he emphasized that the national administration has actively bolstered county governments through strategic infrastructure initiatives, including the construction of modern markets, affordable housing projects and county aggregation and industrial parks.
These targeted investments, he noted are designed to empower local leadership by establishing a business-friendly environment where commerce can thrive.
Ultimately, this robust economic ecosystem is expected to stimulate local markets and expand the counties’ own-source revenue streams, fostering greater financial independence.
“Counties must step out of the national government’s shadow and take ownership of their financial blueprints. Analysts argue that the formulation of county Finance Acts should not be a top-down copy of national projects, but a community-driven process to improve livelihood, enterprise growth and opportunities for youth and women”.
David Odhiambo, CEO of Eastleigh based civil society organization Denovop on his part lauded the Finance Act of 2026 terming it as relatively fair to the common Mwananchi while pointing out provisions of the Finance Act 2026, as it generally targets the people with the highest possibilities, “The middle income and especially for us within the informal sector you’ll find that there’s a lot of reprieve”.
“If you look at the taxation on alcohol and also on tobacco products, it’s a win because we’ve been able to get taxed on selected tobacco products, generally what I can say is that the Finance Act is relatively fair to the common Mwananchi but what we would like to emphasise a lot is the aspect of accountability”.
“We just want to see that the Finance Act is implemented to the latter and in a more accountable way”.
