Nairobi — The Consumers Federation of Kenya (COFEK) has warned that several proposals in the Finance Bill 2026 could significantly raise the cost of living, weaken consumer protections and expose Kenya to regional trade disputes, as Parliament continues scrutiny of the tax measures ahead of the Third Reading.
In consolidated submissions to the National Assembly's Finance and Planning Committee, COFEK said the Bill introduces "hidden digital taxation," retrogressive VAT changes and expanded tax enforcement powers that could disproportionately burden ordinary consumers and small businesses.
The lobby argues that the proposed expansion of the definitions of "royalty" and "management fee" to include payments linked to digital payment systems, switching platforms and card networks would effectively impose withholding taxes on digital transactions, costs that financial institutions are likely to pass on to consumers through higher transaction charges.
