MPs pass Finance Bill 2026, awaits Ruto's assent

The National Assembly has passed the Finance Bill, 2026, in its Third Reading with 122 votes in favour against 40 nays.

The vote is among efforts by the government to fund the Sh4.8 trillion budget for the 2026-27 fiscal year.

The vote saw the government's numerical strength prevail despite a consolidated opposition bloc.

Members of President William Ruto's side and the broad-based government coalition backed the Bill, against a camp led by allies of impeached Deputy President Rigathi Gachagua.

Gachagua had directed DCP-allied MPs to reject the Bill and force a division vote to publicly record each legislator's position.

The passage now clears the way for the Bill to be forwarded to President Ruto for assent before it becomes law.

The legislation sailed through after lawmakers adopted a raft of amendments proposed by the National Assembly Finance and National Planning Committee following public participation exercises held across the country.

Among the key changes made by MPs were the removal or modification of several contentious tax proposals that had attracted criticism from businesses, civil society groups and members of the public.

The government has maintained that the Bill seeks to enhance revenue collection while avoiding the introduction of punitive taxes that could worsen the cost of living.

Treasury officials have argued that the measures contained in the Bill are necessary to support government programmes, reduce reliance on borrowing and improve tax administration.

However, opponents accused the government of introducing measures that would increase the burden on households and businesses at a time when Kenyans are grappling with high living costs.

The vote capped weeks of intense political lobbying and debate inside and outside Parliament, with both supporters and opponents framing the Bill as a test of the government's economic agenda.

Its approval gives the Kenya Kwanza administration a major legislative victory as it seeks to finance development projects, service public debt obligations and fund recurrent expenditure in the coming financial year.