Kenyans have been handed a reprieve after the National Assembly's Finance committee proposed several amendments to the Finance Bill 2026 following widespread criticism.

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In a report tabled before Parliament on Tuesday, June 16, the committee proposed scrapping a clause that would have introduced a 25 per cent excise duty on every mobile phone activated in Kenya.

The Committee argued that the proposal would have created compliance challenges, delayed revenue collection, and caused uncertainty for consumers, and therefore recommended its deletion.

The committee also moved to protect businesses by recommending retaining zero-rated VAT status for several products that the Finance Bill had proposed to classify as exempt.

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These include locally assembled electric motorcycles, electric buses, solar and lithium-ion batteries, transportation of sugarcane to factories, and raw materials used in the manufacture of animal feeds.

According to the committee, reversing the tax incentives would increase production costs, discourage investment, and undermine local manufacturing efforts.

Similarly, the committee rejected a proposal that would have allowed the Kenya Revenue Authority (KRA) to issue notices against taxpayers even while appeals or court cases were ongoing.

The lawmakers argued that the proposal could undermine taxpayers' rights, disrupt business operations, and compromise access to justice.

Further, the committee opposed inclusion of weekends and public holidays in the calculation of timelines for filing tax objections and appeals, warning that such a move would violate principles of fairness and due process.

Despite proposing the removal of several key tax provisions , lawmakers backed several other tax-raising measures in the Finance Bill.

📰 Source: Kenyans.co.ke