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Speaking on NTV Kenya on Monday, Mbadi said the government had already spent about Sh35 billion through fuel subsidies and tax reductions to cushion consumers from rising petroleum prices.
Odhiambo also raises issues with the proposed tax treatment of mitumba imports. The Bill introduces a new Section 12H in the Income Tax Act, which assumes a 5% profit on customs value and requires payment before goods are released by the Kenya Revenue Authority. She says this means a trader bringing in goods worth Sh1 million would pay Sh50,000 whether or not they make profit or loss, calling the approach unfair.
According to a public notice published on MyGov on April 28, 2026, the new system will see validated export values automatically prefilled under zero-rated supplies once the relevant export documents are issued by Customs.
The Ministry of Investments, Trade and Industry warns the Middle East crisis is disrupting maritime and air cargo routes, delaying shipments and raising freight and fuel costs, threatening billions in annual export revenue. Measures are underway to cushion exporters.
KRA Director-General Humphrey Wattanga said monthly domestic VAT receipts now range between Sh28 billion and Sh30 billion, compared to the Sh20 billion previously collected.
The new prices will apply from January 15 to February 14, 2026, following a review conducted in line with the law.
Leslie Thompson, from Bathgate, West Lothian, is being sued by a telco after fleeing the country with his former firm owing £709,000 (Sh120,438,400).
The judgment arose from a case filed by Kenswitch, which was contesting a Sh41.6 million VAT demand on income earned from switching fees. Kenswitch manages interbank ATM and point-of-sale connectivity, allowing cardholders to access banking services across different institutions. The tax agency insisted that the firm’s income was tied to technology services and should attract VAT.
Speaking during an interview on Radio Generation on October 13, 2025, Kanyi said the country is witnessing a gradual but deliberate shift towards indirect taxation, with levies such as Value Added Tax (VAT) and excise duties becoming major revenue sources for government.
Under the revised structure, each entry now carries an extra Sh16 in VAT, while a Sh50 fee applies per transaction. Solo visitors will pay Sh166, while a group of 20 will pay per person plus Sh50 for the entire transaction.
The Finance Committee said the proposed changes would reverse gains made under the 2023 law and harm consumers.
The CS said the Finance Bill currently before the National Assembly contains no proposals to tax these essential items, accusing the opposition and some individuals of spreading fear and misinformation for political gain.