Kajiado North Member of Parliament Onesmus Ngogoyo has declared his opposition to the Finance Bill 2026/2027, raising concerns over what he termed inconsistencies in the government’s tax proposals and potential ripple effects on essential commodities.
Speaking during a televised interview on Citizen TV on Tuesday, June 2, Ngogoyo said the bill contains contradictory provisions, particularly around the promise that Kenyans earning below Ksh30,000 will be exempted from taxation.
“There are several contradictions in the proposal, particularly concerning the promise that people earning below Ksh30,000 will not be taxed. I will be voting NO on this Finance Bill,” Ngogoyo stated.
His remarks come at a time when the government is seeking to rally support for the budget-linked legislation, which outlines key revenue-raising measures for the 2026/2027 financial year.
The Finance Bill has traditionally been one of the most contentious pieces of legislation in Parliament, often sparking debate over its impact on the cost of living.
Ngogoyo also raised specific concerns over proposed tax exemptions on Value Added Tax (VAT) for selected pharmaceutical products and other essential goods.
He warned that while such measures are often framed as relief for consumers, they could have unintended economic consequences.
“Mbadi is proposing the removal of VAT on certain pharmaceutical products and a number of other items. However, this could shift the tax burden to the general public,” he said.
The legislator cautioned that VAT exemptions may not necessarily translate into lower prices for consumers, arguing instead that they could trigger adjustments across related supply chains.
He singled out sectors such as animal feeds and pharmaceuticals as particularly vulnerable to price fluctuations under the proposed changes.
“Removing VAT is not necessarily a good thing, as it may lead to an increase in the prices of animal feeds and pharmaceutical products,” Ngogoyo added.
His position adds to growing scrutiny from lawmakers and economic stakeholders as Parliament prepares for debates on the Finance Bill. Critics have been pressing for clarity on the government’s broader tax strategy amid ongoing concerns about inflation and household affordability.
The National Treasury has defended the proposals, saying they are aimed at balancing revenue collection with targeted relief for essential goods.
However, divisions in Parliament suggest a tough legislative battle ahead as MPs weigh the bill’s economic implications against political and public pressure.