President William Ruto has signed the Finance Bill 2026 into law at State House, Nairobi, officially setting in motion the implementation of new tax and revenue measures for the 2026/27 financial year.
The ceremony was attended by senior government officials, including representatives from the National Treasury and MPs who played a key role in steering the Bill through Parliament. The National Assembly had passed the legislation last week during its third reading, with 122 votes in support against 40 opposing it, amid notable political divisions.
Ruto defended the law, saying it was shaped through broad public participation and was not designed to increase the tax burden on ordinary citizens. He argued that the reforms focus on improving fairness in tax collection by sealing loopholes, strengthening compliance, and ensuring all taxpayers meet their obligations. He also dismissed reports of proposed taxes on land, bottled water and second-hand clothing, calling them misinformation.
The president further said the Finance Act, together with the Appropriation Act, provides the government with the resources needed to fund national priorities under the Bottom-Up Economic Transformation Agenda.
He emphasised that the budget reflects national priorities rather than being a mere financial statement, while reiterating that the measures aim to improve efficiency in revenue collection and support development spending, including a KSh 4.8 trillion budget for the 2026/27 fiscal year.