Parliament Passes Finance Bill 2026, Ruto Signs KSh 4.8 Trillion Budget

Kenya's National Assembly passed the Finance Bill 2026 on June 18 by a vote of 122 members in favour and 40 opposed, clearing the legislative path for the government's KSh 4.8 trillion budget for the 2026/27 fiscal year. President William Ruto signed the bill into law on June 23 at State House, Nairobi.

A Decisive Vote

The bill sailed through on a comfortable margin among those present. The session attracted sharp public criticism over the conspicuous absence of 187 Members of Parliament. The vote was nonetheless legally valid under Kenya's Constitution, which requires a simple majority of members present and voting.

Zero-Based Budgeting as the Cornerstone

The 2026/27 budget is anchored on a zero-based budgeting framework. The National Treasury targets total revenues of KSh 3.631 trillion and aims to generate an additional KSh 120 billion through broader tax coverage.

What Changes for Consumers and Businesses

Excise duty on sugar-sweetened beverages rises from KSh 14.14 per litre to KSh 20. Mobile phone users will face a 25% flat excise levy applied at the point of device activation. A new 10% excise duty on plastic articles and a 5% import levy on second-hand clothing are also included.

Borrowing Target Raises Eyebrows

The government plans to borrow a record KSh 1.1 trillion from the domestic market to cover the fiscal deficit. Economists have flagged the scale of domestic borrowing as a significant concern, warning that heavy government participation in bond markets could crowd out credit for the private sector.