The passage of the Finance Bill 2026 marks the conclusion of the parliamentary approval process for one of the government’s key pieces of legislation tied to the implementation of the 2026/27 Budget.
The Bill underwent the mandatory legislative stages in the National Assembly, including the First Reading, committee scrutiny, the Second Reading, the Committee of the Whole House, and the Third Reading, where lawmakers gave it final approval after considering amendments proposed by the Finance and National Planning Committee.
During the Committee of the Whole House, MPs debated and voted on various clauses of the Bill before adopting several recommendations by the Finance and National Planning Committee chaired by Molo MP Kimani Kuria.
National Assembly Approves Finance Bill 2026. Photo: Courtesy.
The amendments sought to refine a number of tax proposals contained in the original Bill before it was subjected to the final vote.
Following the adoption of the committee’s recommendations, the House proceeded to the Third Reading, where the legislation was passed after securing the support of a majority of lawmakers.
A total of 122 lawmakers voted in favor of the legislation while 40 opposed it. No MP abstained in the vote.
The Finance Bill 2026 forms a critical part of the government’s fiscal policy, as it introduces amendments to existing tax laws and other revenue measures designed to support the implementation of the Ksh 4.7 trillion national budget for the 2026/27 financial year.
The legislation provides the legal framework for the Kenya Revenue Authority to collect taxes and implement changes approved by Parliament, making it an essential instrument for financing government programmes and meeting expenditure targets outlined in the budget.
With the National Assembly having approved the Bill, it will now be transmitted to President William Ruto for assent. If signed into law, the legislation will become the Finance Act 2026, giving legal effect to the tax and revenue measures contained in the Bill.
However, the President also retains the constitutional authority to refer the Bill back to Parliament for reconsideration should he have reservations about any of its provisions.
Once assented to, the Act is expected to guide the implementation of the government’s taxation policies for the 2026/27 financial year and provide the legal basis for revenue collection aimed at funding public services, infrastructure projects and other government programmes.
