The National Treasury has given the assurance to the Members of Parliament that there will be no new tax rates in the Finance Bill of 2026, which is a relief to the citizens who have been facing threats of the increasing cost of living.

The announcement was made through the National Treasury Cabinet Secretary John Mbadi before the National Assembly Budget and Appropriations Committee in Kiambu County on Thursday, March 26, 2026, in a meeting which was chaired by Sam Atandi and centred on discussions regarding the FY2025/26 Supplementary Budget Estimates I.

“I want to state that we are not looking at a possibility of increasing tax rates because there is no difference between this year and last year; Kenyans are the same, and the rates are still the same. We are looking at the possibility of expanding the base,” Mbadi said.

At the meeting, Mwengi Mutuse wanted to understand where the government is going in terms of taxation before the Finance Bill is presented, reminiscing about the 2024 public outrage upon alleged rises in taxes.

“In 2024, the country almost erupted because of the perception that we were increasing taxes, but you have confirmed in your presentation that you have not introduced new taxes and you are exploring alternative ways to fund our public expenditure. What is your assurance in terms of the tax environment that we are likely to get post June 2026?” Mutuse asked.

In answer to this, Mbadi pointed out that the government is not discussing the increase of taxes but rather focuses on the expansion of the tax base. He observed that the taxpayers have not increased as they should, but now it is working on compliance and raising more revenue using efficiency instead of a higher rate.

Mbadi also identified a problem of the mismatch between a digitised taxpayer base and much of the manual collection systems as a major challenge to revenue collection. He exposed that the government is pressuring the Kenya Revenue Authority to embrace quicker and more computerised procedures to increase efficiency.

The CS made a warning that, in case there is no progress, further reforms might have to be made to coordinate tax collection systems with the fast-changing digital economy.

Responding to global challenges

On international issues, Mbadi touched on the issue of tensions that were still rife in the Middle East and how this could affect the supply of fuel in Kenya. He had assured legislators that government-to-government fuel contracts will not go out of business, and suppliers will be trying to keep the supply steady.

Nevertheless, he has recognised that these kinds of global shocks cannot be predicted, observing that the government should be flexible when responding to arising challenges.

Submissions by various departmental committees, such as Education, Finance and National Planning, Blue Economy, and Water and Irrigation, were also submitted as reports to the committee on the Supplementary Estimates I of FY 2025/26.

The Treasury guarantee comes as the government tries to balance between increasing the revenue and alleviating the financial burden on people on the edge of a razor.