Why you should contribute to tax policy in Finance Bill

The Cabinet Secretary for the National Treasury and Economic Planning has invited all Kenyans to submit their ideas for tax policy changes to be considered in the Finance Bill 2026. This invitation, which remains open until 31 December 2025, represents a significant step towards more inclusive economic planning in Kenya’s annual budget-making process, as required by the Constitution of Kenya, 2010, and the Public Finance Management Act, 2012.

Kenya's annual budget-making process operates through clearly defined stages under the Constitution of Kenya, 2010, and the Public Finance Management Act, 2012. The process begins with the Cabinet Secretary for the National Treasury issuing guidelines and budget projections to government entities. These guidelines inform the Budget Policy Statement (BPS), which articulates key fiscal policies and priorities. Stakeholder engagement is integrated throughout these stages, ensuring that input from various groups is considered as the budget policy statement is developed. After Cabinet approval and parliamentary review, the process continues with the submission of budget estimates, public hearings, the presentation of the budget and the Finance Bill to Parliament, approval through the Appropriation Bill, and, finally, implementation with quarterly performance reviews.

In accordance with Articles 10 and 201(a) of the Constitution, public participation is a fundamental value. The Cabinet Secretary is therefore required to invite a broad range of stakeholders including citizens, government bodies at both national and county levels, non-governmental organisations, civil society groups, professional associations, private sector representatives, religious organisations, and other interested parties to submit proposals and take part in budget policy forums and hearings.

The importance of public participation has been repeatedly underscored in Kenya’s judicial decisions, most notably in the context of the Finance Act, 2023. In the case of Law Society of Kenya v National Assembly of Kenya & 3 others (Petition E004 of 2025, [2025] KEHC 5472 (KLR) The High Court made it clear that public participation is not just a procedural formality but a substantive constitutional requirement under Articles 10(2)(a) and 118(b)  of the Constitution mandating that it be meaningful, inclusive, and never illusory or a mere formality. This position was further reinforced by the Supreme Court, which affirmed that genuine public engagement is essential for the legitimacy of legislative processes in Kenya.

The government’s participatory approach is designed to balance the need for revenue with the economic realities faced by Kenyans. By inviting public input, the Treasury seeks to develop tax policies that are transparent, accountable, and responsive to citizens’ concerns. This process acknowledges that tax policy affects everyone. Whether you are a small business owner in Kisumu, a farmer in Meru, a tech entrepreneur in Nairobi, or a tourism operator in Mombasa, tax laws shape economic opportunities and determine how resources are allocated to fund essential public goods and services. Through this inclusive approach, the Treasury is ensuring that every citizen has the opportunity to contribute to the development of these vital policies.

To make your voice heard, the Treasury has set out three key requirements for submissions. You must first identify the specific tax law and provision you wish to change. Next, you should clearly and concisely describe the issue, explaining the problem that needs to be addressed. Finally, your submission must include justification supported by evidence or analysis, ensuring that proposals are well considered and grounded in fact. In addition, proposals should align with the government’s Bottom-Up Economic Transformation Agenda, which aims to drive economic recovery and broad-based growth in key sectors such as agriculture, MSMEs, housing, healthcare, and the digital economy. Tax policy is fundamental to supporting these priorities by creating incentives for investment, removing barriers to growth, and promoting just distribution of the tax burden. Once written submissions have been reviewed, the Treasury will invite stakeholders to make oral presentations to further discuss their proposed changes.

This is a key chance for stakeholders to help shape Kenya’s tax system for 2026 and beyond. With a deadline of December 31, 2025, citizens and groups can submit proposals on key matters that affect their business operations. The Treasury’s use of both written and oral submissions shows its commitment to including everyone in the process. By taking part, you can help make sure the Finance Bill, 2026, meets fiscal goals while considering the real needs of Kenyan taxpayers.

Lynnette Mwangi is an associate, and Ann Magondu is a senior tax manager at Deloitte East Africa. The views presented are their own and not necessarily those of Deloitte. They can be reached at lmwangi@deloitte.co.ke and amagondu@deloitte.co.ke.

This article was originially published on Daily Nation here.