As criticism of the Finance Bill 2026 continues to dominate public debate, the government is increasingly defending the proposed law as a crackdown on tax evasion rather than an attempt to introduce a fresh wave of taxes on Kenyans.
Treasury Cabinet Secretary John Mbadi has repeatedly argued that Kenya’s biggest challenge is not a lack of taxes, but widespread tax leakages that deny the government billions of shillings every year.
Speaking during recent engagements on the Finance Bill, Mbadi maintained that the government is keen on broadening the tax base and ensuring that those who have been escaping the tax net begin contributing their fair share.
“The issue is not increasing taxes. The issue is making sure everybody who is supposed to pay tax pays tax,” Mbadi said while defending the government’s revenue proposals.
The Finance Bill 2026 contains a raft of measures aimed at strengthening the Kenya Revenue Authority’s enforcement powers and tightening loopholes that have been exploited by some businesses and individuals to avoid paying taxes.
According to Treasury, the proposed changes are designed to improve tax compliance while protecting compliant taxpayers who have for years shouldered the burden of financing government programmes.
The government argues that a small number of taxpayers continue to carry a disproportionate share of the country’s tax obligations while others either under-declare income, exploit legal loopholes or completely remain outside the tax system.
Treasury officials say plugging these loopholes could help increase revenue collection without resorting to major tax hikes that would place additional pressure on households and businesses.
The strategy marks a notable shift from the approach that triggered widespread opposition during the Finance Bill 2024 debate, when critics accused the government of imposing excessive taxes on citizens already struggling with the high cost of living.
This time, the government is presenting the Finance Bill as a fairness issue.
“If everyone pays what they are supposed to pay, then the burden on compliant taxpayers reduces,” Mbadi has argued in several public forums while defending the proposals.
The government is also banking on improved compliance to support funding for key sectors including healthcare, education, infrastructure and affordable housing while reducing dependence on external borrowing.
Supporters of the proposal say the focus on tax cheats rather than new taxes could help restore confidence in the tax system and address long-standing concerns that honest taxpayers often end up paying for those who deliberately evade their obligations.
The Finance Bill 2026 is currently before Parliament and remains subject to amendments as lawmakers consider views collected during public participation.
For the government, however, the message is becoming increasingly clear: before asking Kenyans to pay more, Treasury wants those who have not been paying at all to start contributing.