Kenya: Fuel Prices, Taxes On Essential Commodities Dominate Public Concerns Ahead of Budget Reading

Nairobi — Kenyans across Nairobi are calling on the government to ease the burden of high fuel prices and reduce taxes on essential commodities ahead of the presentation of the Finance Bill 2026 by Treasury Cabinet Secretary John Mbadi in Parliament on Thursday.

Commuters, small-scale traders, salaried workers and informal sector players who spoke to Capital FM said the rising cost of transport and production continues to squeeze household incomes, warning that many families are struggling to cope with the high cost of living.

Their concerns come as the National Treasury seeks to defend the Finance Bill 2026, which the government says is largely focused on tax administration reforms, broadening the tax base and simplifying revenue collection rather than introducing new tax rates.

According to Treasury, the government expects to raise about Sh54 billion through administrative changes and improved tax compliance measures.

Among the proposals in the bill is a new single 25 percent tax to be charged during the activation of imported mobile phones.

Treasury CS John Mbadi has argued that the move is meant to replace the current cumulative tax structure that includes VAT, import declaration fees and railway development levies totaling 55.5 percent.

The bill also seeks to tighten oversight of digital and virtual assets by introducing reporting requirements targeting cryptocurrency transactions and digital financial platforms.

Additionally, the Treasury plans to stagger annual tax filing deadlines in a bid to ease pressure on the iTax system. Under the proposed structure, nil return filers would submit returns by December, salaried employees by April and businesses by June.

The government is also targeting improved tax compliance among self-employed professionals and property owners, including landlords, dentists and accountants.

Despite the Treasury's assurances that the reforms are designed to improve efficiency and fairness, many Kenyans say the proposals fail to address the immediate economic pressures facing ordinary citizens.

Teddy, a Nairobi-based banker, said high fuel costs continue to drive up the prices of nearly all goods and services.

"They need to lower fuel prices first because when fuel goes up, everything else becomes expensive. The cost of living is already unbearable for many Kenyans," he said.

Stephen Kamau, a videographer and digital content creator, urged the government to prioritize wananchi in the upcoming budget by reviewing fuel levies and reducing expenditure on top government officials.

"Fuel affects every sector of the ec