OKOA UCHUMI leaders led by Diana Gichengo, Kenya Human Rights Commission Deputy Executive Director Cornelius Oduor and Carolyne Nanga on Thursday addressed the media to strongly oppose the Draft Finance Bill 2026, terming the proposed tax measures excessively high and warning that they could trigger widespread business closures and push millions of Kenyans deeper into poverty.
Speaking on behalf of the 28 civil society organizations under the Okoa Uchumi umbrella, the leaders accused the National Treasury of pursuing a punitive taxation regime that places an unbearable burden on businesses and households while failing to address corruption, wasteful expenditure and fiscal leakages.
The coalition argued that the proposed KSh4.82 trillion budget is founded on unrealistic revenue projections and excessive borrowing that could further strain the country’s economy. According to the leaders, Treasury’s plan to raise KSh2.986 trillion in tax revenue is overly optimistic given the prevailing economic slowdown, declining household incomes and the challenges facing businesses across the country.
“We are witnessing a government that continues to expand taxation even as businesses struggle to survive and ordinary Kenyans grapple with a rising cost of living,” the leaders said.
The coalition warned that the proposed tax measures are unsustainable for both large corporations and micro, small and medium enterprises, arguing that they risk stifling productivity, discouraging investment and undermining economic recovery efforts.
A key concern raised by the coalition is a series of amendments to the Tax Procedures Act contained in the Draft Finance Bill 2026. The leaders argued that the changes would grant the Kenya Revenue Authority unprecedented access to citizens’ private financial information through data mining across eTIMS, banking records and third party tax declarations.
According to the activists, the measures would create what they described as a “financial police state,” where automated surveillance and enforcement mechanisms supersede voluntary tax compliance and expose taxpayers to excessive scrutiny.
The coalition also condemned provisions that permit the aggressive use of Agency Notices to freeze private bank accounts, arguing that such actions can disrupt businesses and livelihoods without adequate judicial oversight.
“The state is increasingly weaponizing tax administration against citizens and businesses instead of focusing on sealing corruption loopholes and enhancing accountability in public spending,” the leaders said.
Further criticism was directed at proposals requiring businesses to support expenses exclusively through eTIMS-generated invoices. The coalition warned that such measures could lock thousands of informal traders, micro enterprises and small suppliers out of mainstream supply chains, ultimately increasing the cost of doing business and driving up consumer prices.
The leaders maintained that the cumulative effect of the proposed tax measures would be slower economic growth, reduced investment and widespread business closures, particularly among small and medium-sized enterprises that form the backbone of Kenya’s economy.
They also strongly opposed a proposal to increase excise duty on mobile phones from 10 percent to 25%, arguing that the move contradicts the government’s commitment to digital inclusion. According to the coalition, the increase would make smartphones unaffordable for many young people, students, entrepreneurs and low-income households who depend on digital technology for education, communication and economic opportunities.
The coalition called on Parliament to delete all tax surveillance clauses in the Bill, withdraw provisions allowing extrajudicial freezing of bank accounts, scale down the proposed budget to realistic levels and cap the proposed mobile phone excise duty increase at a maximum of 12.5%.
The leaders further urged Kenyans to actively participate in the ongoing public participation process by submitting memoranda and attending public forums to oppose what they described as punitive fiscal measures.
They argued that the decisions Parliament makes on the Finance Bill and the national budget will have far-reaching implications on livelihoods, employment, business growth and the overall cost of living.
“The future of Kenya’s economy depends on policies that encourage productivity, support businesses, protect taxpayers and promote accountability. Kenyans must make their voices heard before these measures become law,” the coalition said.
