The secretary for planning and economic affairs in the Democracy for the Citizens Party (DCP), Peter Mbae, has raised sharp concerns over the proposed Finance Bill, warning that some of its clauses could lead to what he termed as “surveillance” of Kenyans’ cash transactions amid an already heated debate on taxation and the cost of living.

Speaking during an interview with a local station on Monday, June 8, 2026, Mbae claimed that the new budget and taxation proposals point to a government strategy focused heavily on raising revenue through increased taxation rather than expanding the economy.

“This new Finance Bill will be surveilling your cash transactions. Kenyans are not safe,” he said.

He argued that some of the measures being introduced, particularly those touching on digital payments and mobile money platforms, risk placing ordinary citizens under constant scrutiny by tax authorities.

According to him, targeting transactions such as M-Pesa payments could have far-reaching consequences on a sector that has become the backbone of Kenya’s daily economic activity.

“They are targeting where the economy is supposed to be growing. How do you target M-Pesa transactions? People are not going to even use mobile phones freely,” he said.

Fears over digital tax surveillance

Mbae further claimed that once taxpayers are required to link identity details such as ID numbers and PINs to financial transactions, it effectively allows authorities to track financial behaviour in real time.

He warned that such systems, if not carefully managed, could create fear among citizens and discourage financial activity.

“This Finance Bill is about surveillance on cash transactions completely. Then KRA comes in because you have to give your ID and PIN and they follow your money,” he added.

Mbae further argued that Kenya risks facing resistance from citizens if taxation continues without visible improvements in service delivery, noting that trust between the government and taxpayers is critical for compliance.

“When you overtax people, they resist. People want to run away from overtaxation without communication and delivery,” he said.

COTU warns against aggressive taxation

Mbae’s concerns come amid growing scrutiny of the Finance Bill 2026 from labour organisations, with the Central Organisation of Trade Unions (COTU) warning against what it describes as aggressive taxation and expanded powers for the Kenya Revenue Authority (KRA).

In its submission to Parliament, COTU raised concerns that workers are already overburdened by taxation despite rising inflation and stagnant incomes, calling for reforms to ease pressure on low- and middle-income earners.

The union, through its advisory board, argued that Kenyans earning up to Ksh60,000 per month should benefit from a comprehensive PAYE reform to improve disposable income and stimulate economic activity.

“The state can no longer rely on an exhausted workforce to sustain the economy through aggressive taxation,” COTU said in its submission.