GOVERNMENT DEFENDS FINANCE BILL 2026, FLAGS SURGE IN CHILD ABDUCTIONS IN MAJOR NATIONAL BRIEFING

The Government has moved to dismiss what it termed as “misleading and politically driven misinformation” surrounding the Finance Bill 2026, while at the same time raising alarm over a sharp rise in child abductions and disappearances across the country.

Speaking on Tuesday, 26th May 2026 at Harambee Annex in Nairobi, Government Spokesman Isaac Mwaura sought to calm public anxiety over the proposed tax measures, insisting that several circulating claims online were inaccurate and had been deliberately exaggerated to cause panic.

GOVERNMENT DISMISSES CLAIMS ON NEW TAXES

Mwaura rejected allegations that the Finance Bill introduces new or punitive taxes, including a motor vehicle circulation levy, VAT on bread, increased rental income tax, and fresh levies on mobile phones and digital transactions.

He clarified that some of the controversial proposals initially under discussion were dropped or revised before the final publication of the bill by the National Treasury.

Among them, he confirmed that:

The proposed increase of residential rental income tax from 7.5% to 10% was withdrawn

Plans targeting Mitumba traders under a simplified tax framework were also dropped

He further dismissed claims that the Kenya Revenue Authority would gain unrestricted access to personal mobile money transactions, emphasizing that existing data protection and privacy laws remain fully in force.

On digital taxation, the Government maintained that the proposed excise duty on smartphones and digital services is a consolidation of existing taxes, not an introduction of new burdens.

At the same time, the State defended proposed regulations on virtual asset service providers, including cryptocurrency operators, saying the reforms are aimed at improving transparency and accountability in the fast-growing digital financial sector.

According to the briefing, operators in the crypto space will be required to maintain transaction records similar to banks and other regulated financial institutions.

TAX RELIEF MEASURES HIGHLIGHTED

Despite public concerns, the Government emphasized that the Finance Bill includes several relief-oriented provisions, including:

VAT exemptions on dialysis equipment

Tax relief on agricultural inputs and animal feed production

Incentives for local pharmaceutical manufacturing

VAT exemptions on transport of sugarcane to factories

Exemptions for solar batteries, electric buses, electric bicycles, and bioethanol stoves

VAT exemptions on public-private partnership infrastructure projects

Mwaura also highlighted administrative reforms affecting salaried workers, including changes to tax filing deadlines. If approved, individual tax returns will now be due by April 30th instead of June 30th, while nil filers will be required to submit returns by January 31st annually.

---

GOVERNMENT RAISES ALARM OVER CHILD ABDUCTIONS

In a separate but equally urgent briefing, the Government expressed deep concern over a rising wave of child abductions, disappearances, trafficking, and violence against minors.

Mwaura revealed that data from the Child Protection Information Management System shows 10,581 child protection cases recorded between January 2025 and March 2026.

The breakdown includes:

6,820 cases of child abandonment

1,952 abductions

1,636 missing children reports

173 trafficking cases

He described the figures as “deeply worrying,” warning that child safety is now emerging as a serious national concern requiring urgent coordinated action.

Security agencies, alongside child protection services, have already activated multi-agency interventions including rescue operations, family tracing and reunification programs, psychosocial support, and prosecution of offenders.

The Government also confirmed the establishment of Children Advisory Committees across counties to strengthen local response mechanisms and improve case handling efficiency.

PUBLIC URGED TO HEIGHTEN VIGILANCE

Parents and guardians were urged to exercise increased caution, particularly during school commuting hours, which authorities say have become high-risk periods for child safety.

The Government advised families to:

Escort children to and from school where possible

Avoid leaving children in the care of strangers

Educate children on personal safety, including avoiding lifts, gifts, or conversations with unknown individuals

Strengthen school handover procedures to ensure children are released only to authorized guardians

Members of the public have also been urged to report missing children, abuse, trafficking, or exploitation through the national child helpline 116 or WhatsApp 0722 116116.