FINANCE BILL 2026: CS Mbadi Responds To New Tax On Crypto, Mobile Money
Treasury Cabinet Secretary John Mbadi has responded to many online claims regarding the Finance Bill 2026.
Mbadi attempted to fact-check rumors about increased taxes on bitcoin, food, digital content creators, mobile money access, and car circulation.
Mbadi spoke during a press briefing on Monday, May 25, after the Treasury released a series of official infographics saying that the Bill does not impose additional taxes on cryptocurrency or digital assets.
He explained that the ideas for digital assets are intended to solve gaps in the burgeoning sector and provide tax equity on par with traditional firms.
FINANCE BILL 2026
Fact check VS False narratives. pic.twitter.com/0FcCZ3zrBh— Hon. FCPA John Mbadi Ng’ongo, EGH (@JohnMbadiN) May 25, 2026
“The rapid growth of digital and virtual asset transactions has created a gap within the existing legal framework due to the absence of clear reporting obligations governing such transactions,” the CS said during a press briefing later in the morning.
“The proposal therefore seeks to apply reporting and record-keeping principles that are already common within traditional financial and commercial activities to the emerging virtual asset sector.”
PUBLIC CLARIFICATIONS ON CERTAIN TAX PROPOSALS UNDER THE FINANCE BILL, 2026.
Let’s debate Finance Bill factually & soberly; not from a point of misinformation and fake proposals aimed at achieving short-term hidden political agenda.
|@KeTreasury| pic.twitter.com/CLE1jYV5hU— Hon. FCPA John Mbadi Ng’ongo, EGH (@JohnMbadiN) May 25, 2026
Mbadi also refuted claims that digital content creators would be subjected to a new 5 per cent withholding tax, saying the Bill does not introduce a new tax on digital content monetisation.
The clarifications further dismissed claims that Value Added Tax (VAT) had been introduced on bread, noting that such proposals are not included in the current Bill.
In addition, Mbadi denied reports of a reintroduced motor vehicle circulation tax, stating that the Finance Bill 2026 does not contain such a levy.
On concerns about privacy, the Treasury clarified that the Bill does not grant government access to personal mobile money transactions or phone data.
“Existing data protection and privacy laws remain fully in force. So, KRA cannot access your Mpesa account or statements,” a statement from the Treasury clarified.
Mbadi defends Finance Bill:
Mbadi warns against misinformation on the Finance Bill
Mbadi says proposals will ease the cost of living#CitizenBriefs pic.twitter.com/sruYW4TLTW— Citizen TV Kenya (@citizentvkenya) May 25, 2026
As previously explained, Mbadi reiterated that the proposed 25 per cent excise duty upon phone activation is not a new charge.
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The CS insists that it’s a consolidation of existing levies into a simplified tax structure, aiming to eliminate multiple layers of taxation on mobile devices.
Additionally, the Treasury confirmed that proposals to increase residential rental income tax from 7.5 per cent to 10 per cent and introduce taxes on imported mitumba clothing were withdrawn following public consultations.
The fact-check, aimed at clearing up circulating information, signals the Treasury’s effort to provide assurances ahead of the new Finance Bill amid growing public pressure over the cost of living, which has been worsened by taxation and fuel costs.
Finance Bill 2026 makes for an interesting & fairly technical read both from a tax policy & administration standpoint.
A 🧵 on the 11 things that stand out from what we are seeing so far for me. pic.twitter.com/eLTeyOLq5s— Julians Amboko (@AmbokoJH) May 2, 2026
The clarifications also provide insight into what lawmakers will deliberate on the Bill after public participation ends.
The Departmental Committee on Finance and National Planning will review all memoranda and oral submissions, compile a report, and present it to the National Assembly.
FINANCE BILL 2026: CS Mbadi Responds To New Tax On Crypto, Mobile Money
