City lawyer Ndegwa Njiru has intensified scrutiny of the Finance Bill 2026, warning that several of its proposed tax measures could significantly raise the cost of living while eroding constitutional safeguards.
His remarks come amid growing public concern over the Bill’s wide-ranging fiscal reforms.
In his assessment, Njiru argued that the legislation contains provisions that would expand state access to private financial data and increase taxation across digital, housing, and essential goods sectors.
framing his opposition as a call for broader public resistance to the proposals.
He outlined what he described as controversial clauses, beginning with data protection concerns.
According to him, the Bill would grant the Kenya Revenue Authority (KRA) authority to access private bank and mobile money records without court approval.
“Grants KRA unchecked access to private bank and mobile money records without a court order, violating constitutional privacy rights,” he said.
Njiru also raised concern over the proposed taxation of digital devices and services, warning that it could deepen inequality in access to technology.
“Raises the excise duty on mobile devices from 10% to 25%, making phones more expensive,” he noted, adding that the change could discourage digital inclusion.
On internet usage, he cautioned that new levies on connectivity could burden consumers further.
“Imposes a new 15% tax on mobile data packages and internet bundles,” he said.
He further criticized proposals affecting financial transactions, arguing that removing VAT exemptions would increase mobile money costs.
“Removes VAT exemptions on financial transactions, driving up transaction fees for mobile transfers and payment systems,” he explained.
Njiru also highlighted what he termed unfair treatment of informal traders in the second-hand clothing sector.
“Forces second-hand clothes traders to pay a 5% tax at customs based on ‘deemed profit,’ regardless of whether they make a loss,” he stated.
On housing, he warned that tenants could be indirectly affected by increased taxation on rental income.
“Raises residential rental income tax from 7.5% to 10%, which is expected to trigger higher monthly rent for tenants,” he said.
He also raised concern over fuel pricing mechanisms and essential production inputs.
“Alters the EPRA fuel levy formula, this will secure state funds rather than lowering local pump prices,” he argued.
“Strips tax exemptions on raw materials used to make local medicines, animal feed, and green energy products,” he added.
The Finance Bill 2026 is expected to undergo extensive parliamentary debate as stakeholders weigh its fiscal intentions against concerns over affordability, privacy, and economic pressure on households.