Experts deliberate on the key proposals in the 2026/27 National Budget during the launch of Deloitte Kenya's Budget Highlights report/HANDOUT
Deloitte Kenya has released its Budget Highlights 2026/27, themed “Balancing Fiscal Realities with Public Expectations”, during a Nairobi event.
The event brought together industry stakeholders and sector experts to assess the National Budget and its implications for the economy.
The report focused on the Finance Bill 2026 and key fiscal proposals expected to shape taxation and revenue mobilisation in the coming financial year.
Discussions at the event centred on tax policy direction, compliance trends, and the likely impact on businesses and households across different sectors.
Fred Omondi, Deloitte East Africa Tax and Legal Partner, said the Finance Bill introduces wide-ranging measures aimed at strengthening government revenue collection.
He noted, “The Finance Bill 2026 contains a wide range of tax measures aimed at raising revenue, broadening the tax base and improving compliance.”
He added that some of the proposals may have cost implications for consumers and businesses, stating, “Some of these proposals risk raising the cost of goods and services in the affected sectors.”
Omondi highlighted that the proposals touch on corporate taxation, digital transactions, excise duties, and value-added tax adjustments, all intended to enhance fiscal sustainability while widening the tax net.
Lilian Kubebea, Deloitte East Africa Tax and Legal Partner, said the proposals signal a shift towards stronger enforcement and taxation of emerging economic activities.
She observed, “The tax measures under the Finance Bill 2026 reflect a tax policy focused on revenue resilience, greater use of technology in enforcement and taxing new forms of economic activity.”
She added that businesses will need to assess both direct and indirect tax effects as they plan for the new fiscal environment.
Kubebea noted that firms may be required to review pricing structures, contracts, and supply chains in response to anticipated compliance demands and possible cost pressures linked to the new tax regime.
Fredrick Kimotho, Deloitte East Africa Tax and Legal Associate Director, raised concern over frequent tax law changes, saying they may affect investor confidence.
He stated, “Frequent changes to our tax laws risk doing more harm than good.” He further emphasised the importance of stability in policy, adding, “For Kenya, which depends on steady investment to grow jobs and revenues, predictability matters as much as tax rates.”
Kimotho said predictable tax frameworks are key to sustaining both local and foreign investment, warning that uncertainty could slow down long-term business planning and economic expansion.
In her commentary, Gladys Makumi, Deloitte East Africa Strategy, Risk & Transactions Partner, pointed to the need for stronger accountability in fiscal planning.
She said, “We're very good with planning and budgeting, but rarely do we come back to hold ourselves accountable and review the outcomes.”
The Budget Highlights report also examined broader economic conditions, including global geopolitical tensions and their potential impact on inflation, fuel prices, supply chains, and consumer spending.
It further outlined government priority sectors such as agriculture, financial services, MSMEs, housing, healthcare, and the digital economy, noting both opportunities and risks facing each area.
Experts said the overall fiscal direction reflects an effort to balance revenue generation with economic stability as Kenya navigates a complex domestic and global environment.
