Nyoro Demands Tax Policy Review as Finance Bill Debate Intensifies

Kiharu Member of Parliament Ndindi Nyoro has called for a comprehensive review of Kenya’s tax policies, arguing that successive Finance Bills have failed to deliver meaningful increases in government revenue despite imposing additional burdens on taxpayers.

Speaking in the National Assembly on Tuesday, June 16, 2026, Nyoro questioned the effectiveness of annual tax measures and urged lawmakers to adopt a data-driven approach when evaluating revenue-raising proposals contained in the Finance Bill 2026.

The legislator began by criticizing the manner in which the Bill was introduced for debate, claiming Members of Parliament had not been given adequate time to scrutinize its contents before deliberations commenced.

“I want to start by first bemoaning the fact that the Finance Bill, as it is, was actually published on the Order Paper slightly before the session, and clearly this was an ambush to Members of Parliament,” Nyoro told the House.

He nevertheless commended legislators who attended the sitting, saying their presence ensured robust debate on the proposed tax measures.

Nyoro further challenged the long-standing assumption that introducing new tax measures automatically translates into higher government revenue. 

He argued that Parliament should evaluate previous Finance Bills based on actual revenue collection figures rather than projections made during policy discussions.

“As a country, we need to undertake introspection. We have always had Finance Bills every single year, and what are we told each time? That it is about tax administration and raising more revenue, but let us use data,” he said.

The MP singled out the controversial Finance Bill 2024, which triggered widespread public opposition and demonstrations across the country. 

According to Nyoro, the heated debate surrounding the legislation did not ultimately result in a significant increase in revenue collection.

He stated that his review of Kenya’s revenue trends over the last two decades showed no substantial spike that could be directly attributed to the tax measures introduced through various Finance Bills.

“The most heated Finance Bill was in 2024, and the leaders of this House are on record as saying that even when Kenyans rejected it, they still went ahead and implemented it. But the question is this: what did the country achieve?” he posed.

Nyoro also took issue with what he described as inconsistencies between government policy announcements and actual legislative proposals. He cited earlier statements by President William Ruto suggesting that workers earning below KSh30,000 would be exempted from Pay As You Earn (PAYE) deductions.

According to the Kiharu MP, such commitments have not been reflected in the Finance Bill 2026, leaving many low-income earners disappointed.

“We have seen the Head of State talking about the exemption of PAYE for Kenyans earning below KSh30,000; that has not been captured here. These kinds of roadside declarations are what we need to bring to an end,” he said.

Nyoro maintained that workers in lower income brackets deserve tax relief at a time when many households are grappling with rising living costs and increased economic pressure.

Meanwhile, Treasury Cabinet Secretary John Mbadi has defended the Finance Bill 2026, insisting that the proposals are aimed at strengthening revenue collection and improving Kenya’s tax-to-GDP ratio. 

Mbadi has also dismissed anticipated protests against the Bill as politically driven, maintaining that the proposals were informed by extensive public participation and stakeholder consultations.

The debate over the Finance Bill 2026 is expected to continue in Parliament as lawmakers consider a raft of tax measures proposed by the National Treasury ahead of the new financial year.

Post a Comment

Previous Post Next Post