Ruto Issues Several Clarifications After Signing the Finance Bill into Law

President William Ruto has issued several clarifications on the Finance Act 2026 after signing it into law at State House.

Speaking shortly after signing the Bill on Tuesday, June 23, 2026, Ruto said the new law does not introduce new taxes on ordinary Kenyans as claimed in some reports.

The President said Parliament conducted wide public participation before passing the Bill. According to him, more than 170 organisations and over 100,000 Kenyans submitted their views on the proposed law through both physical and digital platforms.

Ruto said the Finance Act aims to improve fairness in tax collection by ensuring that individuals and businesses pay the taxes they legally owe.

“This law does not raise taxes on ordinary Kenyans. Instead, it improves fairness by strengthening compliance, closing loopholes and ensuring that everyone pays what is lawfully due,” Ruto said.

He added that the government is targeting tax evasion and revenue leakages rather than ordinary taxpayers.

Ruto Dismisses Claims of New Taxes

The President also dismissed claims that the government had introduced several new taxes through the Finance Act.

He clarified that there is no new tax on freehold land or any other type of land. He also said there is no tax on second-hand clothes, commonly known as mitumba.

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Ruto further stated that there is no new tax on bottled water, M-Pesa transactions, mobile money transfers, mobile phones, airtime, or data.

“The money you send to your family, friends, or business will continue moving as usual. There is no new tax on mobile money,” he said.

The President also said there are no changes to the rental income tax regime and no new taxes on locally manufactured packaging used for essential goods.

President Says Finance Act Introduces Tax Relief and Business Incentives

At the same time, Ruto said the Finance Act contains incentives meant to support businesses, innovation and clean energy.

The incentives will benefit motorcycles, electric buses, electric bicycles, solar batteries, and locally assembled mobile phones.

To protect local sugar farmers and manufacturers, the government has increased the import duty on sugar from Ksh 7.50 to Ksh 40 per kilogram.

According to Ruto, the move will protect the country’s 17 operational sugar factories and support about two million farmers and millions of Kenyans who depend on the sugar sector.

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The Finance Act also introduces a six-month tax amnesty programme. Under the programme, penalties and interest on outstanding tax debts will be waived, allowing taxpayers to settle their tax matters.

In addition, mortgage tax relief that was previously available only to bank borrowers has now been extended to borrowers using registered microfinance institutions.

Ruto further announced that the duty-free allowance for travellers and Kenyans returning from abroad has been increased from Ksh 39,000 to Ksh 260,000.

He said this will allow travellers and members of the diaspora to bring home more personal items and gifts without paying additional duty.

The President also said projects implemented through public-private partnerships and the National Infrastructure Fund will benefit from lower taxes to reduce costs and speed up implementation.

Education Receives Largest Share of Budget

On the national budget, Ruto said the education sector received the biggest allocation of Ksh 784 billion, up from Ksh 526 billion in 2022.

He announced that 20,000 teachers currently serving on contract terms will be moved to permanent and pensionable terms.

The government will also recruit an additional 24,000 teachers, bringing the total number of teachers hired under the Kenya Kwanza administration to 124,000.

Ruto further said the Higher Education Loans Board (HELB) has been allocated Ksh 56.7 billion, up from Ksh 15 billion in 2022, to support university and TVET students.

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