News and Analysis
May 22, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover controversial proposals dropped from the Finance Bill 2026 and NTSA’s warning to Kenyans over fake traffic fine SMS scams targeting motorists.
The National Treasury has withdrawn a number of proposals, including a hike in rental income tax and mitumba tax in the Finance Bill 2026 following public backlash and stakeholder consultations.
As reported by Nairobileo, Treasury also shelved a proposal to increase residential rental income tax from 7.5% to 10%, after concerns it would push landlords to increase rent for tenants already struggling with the high cost of living.
Also dropped is the planned tax on mitumba imports, which sought to impose a presumptive income tax on second-hand clothes and footwear imports. Traders had warned the move would significantly raise clothing prices.
However, Treasury CS John Mbadi has earlier indicated that the proposal would be reintroduced during the amendment stage.
Other dropped changes include amendments to excise duty rules on East African imports, ceramic sanitary ware taxation, and provisions affecting steel manufacturers.
The proposal to exempt human and animal blood from VAT has also been dropped.
The Finance Bill 2026 is currently under parliamentary committee review before debate in the National Assembly.
Meanwhile, as reported by the Business Daily, the Treasury has introduced new tax proposals in the Finance Bill 2026 aimed at sealing loopholes that led to major court defeats for KRA against companies including Absa and Pesapal.
The proposals include taxing transaction fees from card payments and payment service providers such as M-Pesa, as well as imposing taxes on unexplained retained earnings.
The Treasury also wants KRA to gain powers to freeze taxpayers’ bank accounts even when tax disputes are under appeal.
The National Assembly’s Finance Committee is currently engaging various stakeholders in reviewing the bill before a report is tabled ahead of the debate. The deadline for making submissions is today.
Written memoranda can be submitted to cna@parliament.go.ke or drop them off at the Office of the Clerk, Main Parliament Buildings by 5 pm Today.
Read more: How Finance Bill 2026’s Tax Proposals Will Affect Your Money
NTSA has warned Kenyans against fraudulent SMS messages claiming recipients have committed traffic offences and directing them to suspicious payment links.
As reported by Kenyans.co.ke, the authority said it does not collect traffic fines through unsolicited text messages, SMS links or unverified third-party platforms. Fraudsters posing as NTSA officials have reportedly sent the messages from various phone numbers since mid-May.
NTSA flagged the links as phishing sites designed to steal sensitive banking details, including card numbers and CVV codes. The authority urged Kenyans not to click the links, make payments or share personal information through the fake platforms.
Kenya’s public debt has crossed the Ksh13 trillion mark for the first time as the government continues heavy domestic borrowing.
As reported by the Kenyan Wall Street, latest data from the Central Bank of Kenya shows domestic debt stood at Ksh7.24 trillion as of May 15, 2026, while external debt was last reported at Ksh5.78 trillion, bringing total public debt to an estimated Ksh13.02 trillion.
Treasury bonds account for the bulk of domestic borrowing at Ksh5.92 trillion.
The government spent Ksh1.72 trillion servicing debt in FY2024/25, equivalent to about 69% of ordinary revenue collected, more than double the IMF’s recommended 30% threshold.
The State Department for Broadcasting is seeking Ksh400 million to purchase AI software for social media sentiment analysis amid rising concerns over misinformation, disinformation and malinformation online.
As reported by Nation, Broadcasting PS Stephen Isaboke told Parliament that the department requires the funding to help the government keep pace with the rapidly evolving media landscape and strengthen monitoring of online conversations.
According to the PS, the AI-powered tools will help the government analyse public sentiment on social media while enhancing communication and visibility of government programmes and projects.
Simbisa Brands, the operator of Chicken Inn, Pizza Inn and Galito’s, recorded a 15% rise in Kenya revenue to Ksh2.81 billion (US$21.6 million) in the quarter ended March 2026.
As reported by the Kenyan Wall Street, customer volumes grew 21% year-on-year to 3.5 million, reversing the decline experienced in 2025 when political unrest and high taxes affected consumer spending. However, average spend dropped 5% to Ksh802 as more customers opted for value meals and promotions.
Delivery orders surged 71%, averaging 6,000 daily orders, while the company expanded its Kenya network to 259 outlets and plans to open 17 more stores before June 2026.
Kenya plans to install a floating power barge at the Coast as a temporary solution to prevent electricity rationing and nationwide blackouts amid rising power demand.
As reported by the Business Daily, Kenya Power Managing Director Joseph Siror said the gas-powered plant, expected to generate between 200MW and 400MW, was initially targeted for launch by December 2026.
The move comes as delays in onboarding new power plants continue to strain electricity supply.
The floating barge will be Kenya’s first and is expected to support the national grid as the country awaits construction of long-term power projects.
.png){kind=small}
Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.
%20(1).jpg)
