President William Ruto on Tuesday signed the Finance Bill 2026 into law, officially paving the way for the implementation of the government’s revenue and taxation measures for the 2026/27 financial year.
The signing of the bill at State House, Nairobi, marked the final stage of the legislative process after the National Assembly approved the proposed legislation following weeks of debate and public participation.
The new Finance Act contains various tax and administrative measures aimed at increasing government revenue, improving tax compliance, and supporting the implementation of the 2026/27 national budget.
Among the key provisions contained in the law are changes in tax administration procedures, measures aimed at widening the tax base, and amendments intended to enhance revenue collection by the Kenya Revenue Authority (KRA). The government says the measures are necessary to finance development projects, improve public service delivery, and reduce the country’s reliance on borrowing.
The law will support the implementation of the national budget, which allocates funds to critical sectors including healthcare, education, infrastructure development, agriculture, security, and social protection programmes.
President Ruto signing finance bill 2026
President Ruto has previously defended the government’s fiscal policies, saying sustainable revenue collection is necessary to fund development programmes and ensure the country meets its financial obligations.
The passage of the Finance Bill attracted mixed reactions from lawmakers, business groups, and members of the public. Supporters argued that the legislation will strengthen the country’s economy and support government programmes, while critics raised concerns about the potential impact of some tax measures on businesses and the cost of living.
The Finance Act 2026 comes at a time when Kenya continues to pursue economic reforms aimed at reducing the budget deficit, improving domestic revenue collection, and stabilising public debt.
With the President’s assent, the law is now expected to take effect according to the timelines provided in the legislation, allowing the government to begin implementing the new measures during the 2026/27 financial year.
Government agencies, businesses, and taxpayers are expected to study the provisions of the new law to understand the changes that may affect taxation, compliance requirements, and financial operations in the coming months.