Kenya’s Parliament on Thursday approved the Finance Bill 2026, handing President William Ruto’s administration a significant legislative victory as it seeks to finance government spending for the next financial year.
The Bill passed its Third Reading in the National Assembly with 122 lawmakers voting in favour and 40 against, following weeks of political lobbying and heated debate both inside and outside Parliament.
Its approval paves the way for the legislation to be sent to President Ruto for assent before becoming law.
The vote forms part of the government’s broader plan to fund the Sh4.8 trillion budget for the 2026/27 financial year. Government-backed MPs, alongside members of the broad-based coalition, rallied behind the measure despite resistance from an opposition bloc led by allies of impeached Deputy President Rigathi Gachagua.
Gachagua had urged MPS aligned to his Democracy for Citizens Party (DCP) to reject the Bill and demand a recorded vote, a move intended to place every legislator’s position on public record.
The legislation ultimately survived the challenge after lawmakers adopted several amendments recommended by the National Assembly’s Finance and National Planning Committee following public participation exercises conducted across the country.
Among the most notable changes was the removal or revision of several tax proposals that had drawn criticism from business groups, civil society organisations and members of the public.
Government officials have defended the Bill as a necessary measure to improve revenue collection without imposing taxes that would significantly worsen the cost of living.
Treasury officials argue that the proposed changes are intended to strengthen government finances, support public programmes and reduce dependence on borrowing.
Critics, however, contend that some provisions could still place additional pressure on households and businesses already struggling with rising expenses.
The parliamentary vote capped weeks of intense debate over the country’s economic direction, with supporters portraying the Bill as essential to maintaining government services and development projects, while opponents warned against increasing the burden on ordinary Kenyans.
For President Ruto, the Bill’s passage marks an important political win as his administration seeks resources to fund development plans, meet debt obligations and sustain government operations in the year ahead.
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