Government Debunks Viral Tax Claims on Bread, Mitumba and Cars

By Margaret Naishorua

The government has dismissed claims circulating on social media regarding the Finance Bill 2026, describing some of the information being shared as false and misleading.

Speaking during a press briefing in Nairobi on Monday, Government Spokesperson Isaac Mwaura urged Kenyans to read the official Finance Bill published by the National Assembly and participate in the ongoing public participation process.

Mwaura cautioned that misinformation surrounding the bill could create unnecessary fear and confusion among citizens.

“There is no motor vehicle circulation tax, no tax on bread, and no tax on mitumba as has been claimed online. Kenyans should rely on the official bill and submit their views through the public participation process,” said Mwaura.

He explained that the government's objective is to raise revenue for development projects while reducing the country's dependence on borrowing.

According to Mwaura, the bill seeks to enhance tax collection, improve tax compliance, and create a more favorable environment for business and investment.

Among the key proposals are tax exemptions for employees working under contracts of at least three years, the elimination of double taxation on trusts, and the introduction of a five percent withholding tax on buyers in the scrap metal sector.

The bill also proposes simplified tax filing timelines, tax exemptions on pension benefits paid to beneficiaries of deceased pensioners, and incentives aimed at attracting foreign investment.

Additionally, the government plans to increase the duty-free allowance for arriving passengers from USD 300 to USD 2,000 and remove VAT on dialysis equipment to help reduce healthcare costs.

The Finance Bill 2026 continues to attract public attention, with debate intensifying online as Kenyans scrutinize its proposed measures ahead of parliamentary consideration.