Finance Bill 2026: What’s next after Parliament votes?
By Ndiritu Wanjiru, June 19, 2026Parliament’s Thursday, June 18, 2026, approval of the Finance Bill 2026 was a significant success for President William Ruto’s government and a major success for the government’s revenue-raising efforts for the 2026/27 financial year.
However, as mentioned, the bill has still not been enacted due to a vote in the National Assembly.
President’s desk
The next step is for President William Ruto to sign the bill into law. The President may either sign the bill into law or return it to Parliament with a reservation about specific provisions in the bill under the Constitution. As the bill was sponsored and passed by the government with support from the government’s allied MPs, it is anticipated that assent will be granted.
Once signed by the president, the legislation will officially become the Finance Act 2026 and will be published in the Kenya Gazette, paving the way for the implementation of the new tax measures.
The law takes effect
Not all provisions of the Finance Act will immediately come into effect upon presidential assent. The law has commencement clauses that determine when the various sections of the law will come into operation.
The majority of the tax measures will come into effect on July 1, 2026, which is the beginning of the next financial year. Some provisions could be effective at a later date, depending on the nature of the taxes involved or dates for implementation set by the National Treasury.
The Act will be published in the Kenya Gazette, which will give the government the legal authority to implement the accepted tax changes.
KRA’s implementation role
The Kenya Revenue Authority (KRA) will be the prime agency to enforce the new law after the gazetting.
KRA will have to revise its tax collection systems, provide guidelines for implementation and inform its taxpayers of the changes. The Finance Act will place new requirements on businesses, employers, importers and other taxpayers to adjust systems to meet the requirements.
The authority will also be mandated to issue detailed notices that explain how different tax incidents will be implemented and when taxpayers should adhere to the provisions.
Financing 2026/27 Budget
The Finance Bill is a key piece of legislation which is passed by Parliament because it sets out the funding of the government’s annual budget.
The National Treasury is expecting the provisions of the Finance Bill 2026 to fund the budget for the 2026/27 financial year that starts on July 1. Taxes and levies imposed and/or modified by the Act will be used to support government functions, development, compensation, infrastructure and debt repayment.
The government would have difficulty collecting the revenues it aims for and paying for its ambitious spending plans, set out in the country’s national budget, without the Finance Act.
Potential legal challenges
The law-making process may not be complete even after the president signs the bill into law.
The Constitution guarantees the right of individuals and businesses, civil society organisations, and political parties to take action if any provision of the Finance Act is found to be inconsistent with the Constitution. There have been challenges to previous finance acts concerning public participation in the tax process, as well as to the constitutionality of certain taxes.
If petitions are submitted, some parts of the law could be suspended or invalidated, impacting the government’s revenue forecasts and plans.
With the start of the new fiscal year looming, many factors will be in focus as the country prepares for the year ahead. The first action will be taken by President Ruto, who will have to sign the bill. Secondly, taxpayers will be keenly watching for gazettement and publication of the Finance Act 2026.
The issuance of the implementation guidelines for KRA will also be important to clarify the practical application of the new taxes. Meanwhile, any court challenges may have a significant impact on the implementation period of some provisions.
Ultimately, Kenyans will be keenest on how these new tax measures impact the cost of living, business operations and economic activity in the upcoming financial year.
With the Finance Bill now moving to State House, the spotlight is on implementation, rather than Parliament. The Finance Act 2026 will do the job once it is approved before July 1. This will determine the path of tax collection and revenue mobilisation for the coming fiscal year, which will form the basis of the government’s economic policies for the next year.