The Lower Eastern Times Opening The Third Eye
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By: Moses Mutua, Mt Kenya university
The Finance Bill 2026 has once again placed Kenya at a critical decision point. As Parliament continues debating the proposals, the country is confronted with a pressing question: how can the government raise adequate revenue to fund public services without overwhelming citizens and businesses already burdened by a high cost of living?
The solution lies not in choosing between taxation and economic growth, but in achieving a fair balance that supports both national development and economic stability.
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Kenya requires sufficient revenue to finance essential services such as healthcare, education, infrastructure, and security. At the same time, the government faces pressure to reduce borrowing and improve fiscal discipline. However, revenue measures that ignore the economic pressures facing citizens risk weakening the very economy they are meant to strengthen.
Many households are already struggling with rising costs of food, transport, electricity, rent, and internet access. Small and medium-sized enterprises, which are key drivers of job creation, are also grappling with increasing operational expenses. Any additional taxes or levies often end up being transferred to consumers through higher prices.
Kenya’s position as a regional leader in digital innovation and financial inclusion must also be protected. Tax reforms affecting the digital and entrepreneurial space should be carefully designed to avoid slowing progress or discouraging innovation.
Young people are particularly affected by these economic decisions. Each year, thousands of graduates enter a competitive job market with limited opportunities. Policies should therefore encourage investment, support entrepreneurship, and promote sustainable job creation rather than stifling business growth.
As a university student, I observe the daily financial pressures facing many young people, from transport costs to learning materials and internet expenses. Decisions made in Parliament today will directly shape the opportunities available to future generations.
The Finance Bill also highlights the importance of public participation. Recent national discussions around taxation have shown that citizens, especially the youth, are increasingly engaged and demanding transparency, accountability, and meaningful consultation in policymaking.
This is not opposition to taxation itself, but a call for fairness and responsible governance.
Ultimately, a strong Finance Bill is not defined solely by how much revenue it raises, but by the level of public trust it builds. Citizens are more willing to contribute when they believe resources are being managed transparently and efficiently.
The Finance Bill 2026 presents an opportunity for Kenya to demonstrate that economic growth and public welfare can go hand in hand. By protecting businesses, supporting young people, and ensuring a fair tax system, Parliament can help shape a more inclusive and sustainable economy.
Kenya does not need a Finance Bill that only increases revenue. It needs one that builds confidence, encourages investment, and secures a better future for all citizens.
