NAIROBI – Kenya’s National Treasury on Tuesday unveiled a controversial Finance Bill 2026 aimed at raising 120.3 billion shillings ($931 million) in new taxes, a move that analysts warn could reignite the deadly anti-government protests that paralyzed the country two years ago.
The proposal, submitted to the National Assembly by Treasury officials, seeks to bridge a widening budget deficit as the government grapples with mounting external debt repayments.
“We are walking a tightrope between fiscal responsibility and the economic reality of our citizens,” a senior Treasury official told AEA on condition of anonymity.
The 2024 “Gen Z” protests, which resulted in at least 60 deaths, were triggered by a much larger tax package.
While the 2026 plan is smaller in scale, the underlying economic frustrations—high inflation and youth unemployment—remain potent. Opposition leaders have already signaled resistance, arguing that the tax burden on the middle class and informal sector has reached a breaking point.
Economic analysts note that while the Central Bank of Kenya (CBK) has successfully stabilized the shilling and checked inflation, the government’s appetite for domestic revenue collection remains the primary flashpoint for civil stability.
