Treasury Cabinet Secretary John Mbadi hit back at opposition leaders on May 25 and 26, 2026, for what he called misleading claims about the Finance Bill 2026. He insisted the bill aims to ease the load on ordinary taxpayers rather than add new burdens while speaking in Nairobi. Many Kenyans remain sceptical after broken promises on tax relief and past protest memories.
The exchanges came as public forums and media briefings heated up around the bill tabled in Parliament earlier this month. Mbadi defended specific proposals and urged people to read the actual document instead of listening to what he described as twisted versions circulating online and in rallies.
Mbadi Calls Out Opposition for Invented Clauses
Mbadi took particular aim at Wiper leader Kalonzo Musyoka and others in the United Opposition. He said they were importing clauses that simply do not exist in the bill to stir up anger.
“I am the one who actually drafted and submitted the Finance Bill 2026, and I ask myself which of these punitive tax measures I am not aware of,” he stated during his address. He challenged critics to point out exact lines rather than speak in general terms about hidden taxes.
In his speech to journalists and later at public meetings, Mbadi repeated that no provisions target land ownership through freehold or leasehold taxes. “There is nowhere in the bill that talks about taxing land. I wish he could point out any clause that talks about leasehold or freehold land taxation,” he added. He described such talk as pure propaganda meant to scare people ahead of key decisions in the National Assembly.
Phone Activation Tax Explained as Simplification Move
One proposal drawing plenty of attention involves mobile phones. Mbadi spent time clarifying the 25 per cent excise duty on activation. He explained it replaces a messy collection of charges that currently add up to around 55 per cent when phones enter the country.
“There is no new tax. There is no additional charge. “What we are doing is replacing the current fragmented framework with a single 25 per cent excise duty collected upon activation of the phone,” Mbadi said in his remarks.
He noted that importers would bring in devices without immediate levies, and the duty kicks in only when a buyer activates the handset on a network.
Traders in areas like Nairobi’s busy phone shops might actually feel some relief under this setup, according to Treasury’s view. Mbadi argued it brings transparency and cuts cash flow problems for businesses stocking handsets. Still, young people who rely on affordable devices for online work and studies worry any change could push prices higher in practice.
PAYE Relief Delay Sparks Fresh Criticism
Questions about the missing PAYE adjustments also came up. Many had expected relief for lower earners following earlier government talk. Mbadi acknowledged the promise but pointed to tight finances and the need to balance the budget first.
He told audiences that the government is still hunting for more revenue and cannot act on all commitments right away. Critics jumped on this as dodging accountability, especially after months of high living costs in places like Nakuru, Kisumu, and Mombasa markets.
At Jeevanjee Gardens on May 26, where Mbadi met Bunge La Mwananchi members, the conversation turned lively. Residents shared stories of stretched salaries and rising prices for basics.
Mbadi stood firm that the bill broadens the tax net so a smaller group does not shoulder everything. “We cannot be a welfare nation because we do not have the economic muscle to be one,” he noted in related briefings. He encouraged everyone to send written views before deadlines close so Parliament can consider adjustments.
Calls Grow for Kenyans to Read the Bill
Across Nairobi streets and social media, reactions split between those praising Mbadi for facing the public and others who see the defence as tone-deaf. Vendors near Tom Mboya Street and matatu crews in town expressed fatigue with constant money pressures.
As committees in Parliament sift through thousands of submissions, the coming weeks will show whether public pushback leads to real tweaks. For families in estates from South B to Buruburu, the stakes feel personal.