Muite questions Finance Bill 2026 over E-Citizen, SHA and fuel import scandals
By Mustafa Juma, May 9, 2026Veteran lawyer and political figure Paul Muite has raised sharp questions over the proposed Finance Bill 2026.
Taking to his official X account on Saturday, May 9, 2026, Muite cited past reported financial mismanagement and corruption in key government systems, including E-Citizen, Social Health Authority (SHA), and fuel import arrangements.
He questioned the moral authority of both Parliament and the executive to increase taxes on Kenyans, arguing that the government should first address accountability in public funds before introducing new tax burdens.
Muite argued that millions of Kenyans are already over-taxed and struggling under rising economic pressure, insisting that any new taxation measures must be preceded by the recovery of misappropriated public funds.
“Incoming Finance Bill: Does Parliament/Executive have moral authority to increase taxes on the already over-taxed Kenyans without first returning money stolen/looted in; E-Citizen; SHA; G-2-G Fuel imports; Construction kickbacks, budgeted corruption, e.g., Education Min., etc?BOYCOTT?” Muite wrote on X.
Growing concerns over Finance Bill 2026
Muite’s concerns come just a day after Mumias East Member of Parliament Peter Salasya decried the proposed Finance Bill 2026, saying that new taxes on second-hand clothes, better known as ‘mitumba’, will affect the small traders, raise consumer costs, and add to the pressure on the country’s informal economy.
Taking it to his X account on Friday, May 8, 2026, Salasya pointed out that several proposals in the Finance Bill may make it more expensive to run a business and lead to “double taxation” and complex compliance arrangements for traders already facing a challenging economic climate.
“A tax on mitumba (second-hand clothing) is a direct hit on the informal sector and mitumba traders. Taxable profit is deemed to be 5% of the customs value of imported worn clothing and footwear,” Salasya argued.
“The tax is due upon importation and before goods are released by customs. This is a final tax, meaning traders cannot claim expenses or deductions. This will force traders to pay income tax on deemed profit before even selling the goods. Salasya errs on the finance bill 2026 over the mitumba tax.”
Salasya has said that one of the most controversial measures is to impose a presumptive tax on secondhand clothing and shoes (also referred to as mitumba). The measure would define taxable profit as 5 per cent of the customs value of the imported goods and require that the tax be paid at any time before the goods are released by customs.
Tax filing timelines
Lawyer and political activist Willis Otieno has also raised concerns over a proposal in the Finance Bill 2026 seeking to shift the annual tax return filing deadline from June to April.
Taking to his official X account on the night of Friday, May 8, 2026, the Safina deputy party leader questioned the government’s motive behind the proposed changes, arguing that Kenyans deserve a clear and transparent explanation.
“The Finance Bill 2026 proposes moving the filing of tax returns from June to April. This proposal demands immediate and transparent justification, not just a line in a bill,” Otieno stated.
He questioned whether the proposed adjustment was intended to serve taxpayers or merely help the government access revenue faster.
“Why the rush? Who truly benefits from this accelerated timeline, beyond the government’s perceived need for quicker cash?” he posed.
Former Law Society of Kenya president Faith Odhiambo has echoed concerns from the many provisions of the Finance Bill, 2026, that could see Kenyans’ tax burden become significantly higher, financial inclusion further eroded, and the compliance burden on businesses heavy.
The due date for filing nil returns has also been reduced to January 31, with Odhiambo arguing that this will give Kenyans less time to complete the audit, complete cash-flow planning, and meet compliance requirements.
“On tax filing timelines, the Bill moves the income tax return deadline to April 30th, which is two months earlier than the current June 30th, and compresses nil return filing to January 31st. This reduces the time available for audit completion, cash flow planning, and compliance. For small businesses and individual traders, this is not administrative reform. It is an additional compliance cost they can ill afford,” Ofdhiambo wrote on X on Friday, May 8, 2026.