National Treasury Cabinet Secretary John Mbadi in his office on April 29, 2026. /TREASURYNational Treasury Cabinet Secretary John Mbadi has dismissed claims that the Finance Bill, 2026, seeks to introduce annual land rent on freehold land, saying Wiper leader Kalonzo Musyoka is spreading misinformation and politicising the proposed tax measures.
Speaking at the National Treasury Buildings while outlining the key provisions of the Finance Bill, Mbadi said false information circulating online had misrepresented the contents of the proposed law.
He challenged critics of the Bill to identify specific clauses they consider punitive, saying claims made against the legislation were not supported by its contents.
“I’m the one who drafted and actually submitted the Finance Bill, and I ask myself, ‘which are these punitive tax measures that I’m not aware of?’” Mbadi said.
The Treasury CS said he had reviewed the Bill again to establish whether any controversial provisions had been overlooked, but found no basis for the allegations.
“So, I’m really curious what is really happening because someone says punitive taxes but when you go into the details, they don’t highlight those so-called punitive tax measures. Then I ask myself, is it politicising the Finance Bill of 2026?” he posed.
The remarks were in response to comments made by Kalonzo during a church service on Sunday, where the Wiper leader claimed the Finance Bill quietly introduces a tax on freehold land by converting it into leasehold tenure, thereby requiring landowners to pay annual rent.
Kalonzo argued that the proposal would affect Kenyans who inherited land from their forefathers as well as communities holding ancestral land.
“So now your grandchildren will be paying rent because leasehold means you pay rent. This is what this administration is trying to introduce, so we are saying reject, reject, reject,” Kalonzo said.
Mbadi dismissed the claims, noting that the Bill contains 57 clauses and none addresses land ownership, leasehold conversion or land taxation.
“If there is a problem with the Finance Bill, 2026, let’s point it out, and then we deal with it, but let us not politicise,” he said.
“Hon Kalonzo is a lawyer. I wish he could point out in the Bill that is before the National Assembly any clause that talks about leasehold land or freehold land and taxation,” he added.
The Treasury CS went further, accusing the opposition leader of knowingly advancing falsehoods.
“To me, it’s irresponsible for a leader of such stature to propagate propaganda because I know he knows that is lying. That is irresponsible politics,” Mbadi said.
The Finance Bill, 2026, published on May 5 and submitted to the National Assembly by Mbadi, outlines the government’s proposed revenue-raising measures and amendments to several tax laws.
Among the statutes targeted for amendment are the Income Tax Act, Value Added Tax Act, Excise Duty Act, Tax Procedures Act, Miscellaneous Fees and Levies Act and the Stamp Duty Act.
The Bill also proposes changes to the Road Maintenance Levy Fund Act by reducing allocations to the Road Annuity Fund from Sh3 to Sh1.50 per litre.
Mbadi has consistently defended the legislation, maintaining that its primary objective is to broaden the tax base rather than introduce new taxes.
Speaking during a public forum at the University of Nairobi on May 22, he said expanding the tax base means bringing more eligible taxpayers into the system to ease the burden on those already paying taxes.
