Finance Bill 2026: How Gen Z is decoding proposed tax changes amid digital tax scare

• Gen Zs across Kenya have taken to social media to analyse and explain the Finance Bill 2026 in simpler terms
• Many are using videos, posters, and online content to break down how the proposed tax changes could affect daily life
• Some argue the Bill could worsen the cost of living, while others share simplified explanations of its clauses for public understanding

Public participation on the Finance Bill 2026 ended on Monday, May 25, but Gen Z remains determined to use available resources to decode, analyse, and educate one another on the contents of the Bill.

Many have taken to social media, sharing videos explaining sections of the Bill that have become a bone of contention among citizens.

How are Gen Z’s decoding contents of the Finance Bill 2026?

They have also shared practical examples of how the Bill could affect the daily lives of Kenyans, making it easier to understand.

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Others have created posters illustrating what could happen if the Bill is passed in Parliament.

Videos shared across platforms, including TikTok, X, Instagram, and Facebook by young Kenyans have become an eye-opener amid several other issues happening in the country at once.

For many of these youths, ongoing challenges such as rising fuel prices should not divert attention from the Bill before it is enacted.

On May 11, 2026, the National Assembly’s Departmental Committee on Finance and National Planning opened the submission window, inviting Kenyans to submit memoranda on the Finance Bill as part of constitutional requirements for public participation in lawmaking.

However, the proposed Finance Bill 2026 has sparked significant concern among young people, with some arguing that it could further increase the already high cost of living.

Many of the videos claim that the Bill introduces more aggressive taxation, particularly in the digital space.

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Concerns over the “digital tax” proposals

Many Gen Zs earn income through the digital economy, and the Bill’s focus on taxing internet usage, mobile services, and digital transactions has sparked widespread concern.

The Finance Bill 2026 proposes expanding the definition of “royalty” to include payments related to digital payment platforms, software distribution systems, and transaction networks, effectively widening the tax net on digital services.

Additionally, it proposes an increase in levies on M-Pesa transactions, a move that could make sending and receiving money more expensive.

“KRA will have the power to access your M-Pesa transactions. Why now, even after increasing transaction costs? Mobile phones are also going to become expensive because of the 25% excise duty,” said a content creator.

Others also raised concerns about proposed changes to rental income tax and second-hand clothing imports, noting that while some clauses may appear indirect, their impact could be felt directly by citizens.

“Rental income tax going up from 7.5% to 10% will automatically bring pressure on rent, and digital VAT on transactions will directly affect your fees. These are just a few red flags,” said Janet Mbugua.

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Some Gen Zs have also taken time to explain how to either support or reject various clauses in the Bill.

The videos have gone viral, with many expressing frustrations over the contents of the Bill, even as Treasury Cabinet Secretary John Mbadi defended it, saying several clauses have been misunderstood.

CS Mbadi defends proposed taxes in Finance Bill 2026

Mbadi clarified that the proposed excise duty on mobile phones does not introduce a new tax but instead replaces existing multiple charges.

“Currently, mobile phones are subjected to several taxes and levies, including 16 per cent VAT, 10 per cent excise duty, 25 per cent import duty, 2.5 per cent Import Declaration Fee, and a two per cent Railway Development Levy. Cumulatively, they create an aggregate tax burden of approximately 55.5 per cent within the current mobile phone taxation framework,” Mbadi said.

The CS affirmed that under the proposed system, these multiple charges would be replaced by a single 25 per cent excise duty collected upon activation of the phone.

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Source: NGBREAKINGNEWS