Counties urged to go slow on levies and align with Finance Act 2026

National Taxpayers Association CEO Patrick Nyangweso says cown source revenue can be enhanced if counties invest in production. [Courtesy]

Kenya’s 47 county governments should go slow on fees and levies to avoid losing the national gains of the Finance Act 2026.

As counties finalise their Finance Bills, the National Taxpayers Association (NTA) is urging them to mimic the national fiscal document and avoid the possibility of introducing more levies and fees, in search of own source revenue.

NTA chief executive Patrick Nyangweso said that own source revenue can be enhanced if counties invest in production by leveraging the projects spearheaded by the National Government.

Kenyans are already operating in a strained fiscal environment and compounding this with more fees and levies, he said, would be a disservice.

“When they come up with respective county Acts, they should be harmonised with the national document. We do not want to see governments at the county level go on to burden taxpayers,” he said at the sidelines of a meeting with civil societies and government agencies on the impact of the Finance Act 2026.

To supplement what they get from the exchequer, counties, through their respective Finance Bills and consequent Acts, are at liberty to introduce or increase fees of the services they offer, such as parking.

Such an increase may then negate the reprieve already offered by the national government through the Finance Act.

While counties need to have their Appropriation Acts by June 30, Finance Acts usually delay, and some may be in place in September due to the 90-day window period they have in the Public Finance Management regulations.

However, there is a push to have these Acts in place by June 30.

Such fees could be catastrophic for small businesses, as noted by Stephen Osedo, head of policy, research, and advocacy at the Kenya National Chamber of Commerce and Industry (KNCCI).

“Every so often we see tax amendment bills or counties reviewing their legislation around fiscal policy. You wake up, and there is a new levy or fee that has been introduced,” he said.

Nyangweso stated that the National Government has supported the counties through various projects such as affordable housing, markets and the county aggregation and industrial parks (CAIP).

These projects, he said, should help the devolved units provide a good environment for businesses to thrive, which would then improve their own source revenue.

“It is the responsibility of the county government to work with the county assembly and also the county executive to ensure the sustainability of those modern markets,” he said. “What are we going to sell in those markets if we do not invest in local production?”

He insisted that counties should not ride on what the national government has done on the ground.

“They must engage the public so that they prioritise when they are making their respective Finance Acts, it driven by the demand to improve on livelihood, enterprise growth, and opportunities for youth and women,” he said.

Even with the fairness of the Finance Act, Nyangweso insisted that value for money should not be negated.

“It is not about paying taxes. Citizens want to see value for money,” he said.