Gachagua Loses Again as MPs Approve Finance Bill 2026

Democracy for the Citizens (DCP) party leader and former Deputy President Rigathi Gachagua has failed in his bid to rally Members of Parliament against the Finance Bill 2026 after the National Assembly passed the legislation in its Third Reading with 122 votes in favour and 40 against.

The vote, held on Thursday, June 18, was part of efforts by the government to finance the Ksh4.8 trillion budget for the 2026/27 financial year.

As a result, the vote saw President William Ruto secure a decisive parliamentary win as his allies dominated the division, effectively outnumbering the opposition bloc led by Gachagua.

The passage now clears the way for the Bill to be forwarded to President Ruto for assent before it becomes law.

Gachagua Fails to Rally MPs Against Finance Bill 2026 as Ruto Wins Vote

Despite efforts to consolidate resistance, the government’s numerical strength carried the day in the National Assembly.

Ahead of the vote,  Gachagua had instructed MPs allied to the DCP party to reject the Finance Bill 2026.

Also Read: Senator Karungo wa Thang’wa Faces Backlash Over Opposition to Finance Bill 2026

He described the vote as a defining moment, urging the legislators to take a clear position on whether they stood with ordinary Kenyans or supported policies he said increased economic burden.

“Today’s vote at the National Assembly for or against the 2026 Finance Bill is a defining moment for the people of the Republic of Kenya,” Gachagua said.

He further directed DCP-aligned MPs to oppose the Bill and remain in the House to force a formal division vote.

“Our DCP-allied members have instructions to vote against the Finance Bill 2026 and stay in the House to force a division,” he said.

Gachagua also warned against abstaining from the vote, saying neutrality was not an option on matters affecting citizens.

Finance Bill 2026 Analysis

During the vote, MPs dropped several controversial proposals, reducing expected additional revenue from about Ksh129 billion to Ksh98 billion.

One key amendment was the removal of a proposed 16% VAT on mobile money transfer fees such as M-Pesa and Airtel Money, shielding users from higher transaction costs.

Also Read: Gachagua Issues Directive to Mt Kenya MPs Ahead of Finance Bill 2026 Vote

Another rejected proposal would have required taxpayers to pay the full principal tax amount before appealing Kenya Revenue Authority (KRA) assessments. Under the plan, a business facing a Ksh10 million demand would have had to pay upfront, with refunds issued only if the appeal succeeded.

Lawmakers also rejected a proposed 25% excise duty on imported mobile phones, while a plan to impose tax at the point of activation was also dropped over concerns about affordability and digital inclusion.

Additional concessions included the removal of certain agency notice provisions and other measures that had faced strong opposition from businesses and the public.

Follow our WhatsApp channel for instant news updates

Another loss for Gachagua as MPs pass Finance Bill 2026 : Full voting analysis. Photo/ Parliament