List of Revised Taxes Proposed by Ruto and How it Will Affect Kenyans

The Kenyan government has unveiled the proposed Finance Bill 2026, introducing a series of new taxes and revenue measures aimed at increasing collections for the 2026/2027 financial year. 

The proposals, introduced under President William Ruto’s administration, are expected to help fund a national budget estimated at KSh 4.78 trillion.

According to the National Treasury, the new tax measures could generate approximately KSh 120 billion in additional revenue, while the is targeting nearly KSh 3 trillion in total tax collections. 

Among the most talked-about proposals is a 25 percent excise duty on smartphones and communication devices. 

The tax would reportedly be charged during device activation, a move that could significantly increase the cost of mobile phones and digital gadgets for consumers across the country.

The bill also targets the second-hand goods sector, commonly known as “mitumba.” A proposed 5 percent levy on imported used clothes, shoes, and related items may lead to higher prices for affordable products relied upon by many low-income households.

The betting and gaming sector is also set for tighter taxation. The government has proposed a 20 percent withholding tax on betting winnings, alongside expanded levies on betting deposits and related transactions.

Officials argue that the measures are aimed at broadening the tax base and regulating the fast-growing industry.

Environmental taxes also feature prominently in the proposals. Plastic products could face an additional 10 percent tax, while coal imports may attract a 5 percent levy as part of efforts to support climate action and reduce pollution.

Consumers may also feel the impact in the food and beverage sector.

Fruit and vegetable juices are expected to attract excise duties ranging between KSh 14 and KSh 20 per litre depending on sugar levels, potentially increasing retail prices.

In the digital economy, the government plans to strengthen withholding taxes on royalties and expand reporting requirements for cryptocurrency and virtual asset providers. 

Fintech companies and digital payment systems may also face stricter compliance obligations.

While government officials say the proposed taxes are necessary to reduce tax evasion and stabilize public finances, critics argue that the measures could further increase the cost of living for ordinary Kenyans already struggling with rising prices and economic pressure.