Kiambu Senator Karungo wa Thang’wa has called for the rejection or substantial amendment of the Finance Bill 2026, warning that its current provisions could undermine local industries, destroy jobs, and derail Kenya’s industrialisation agenda.
The Senator argued that the legislation fails to support local manufacturing and instead favours the importation of finished products.
According to the Kiambu Senator, the Bill should have been designed to stimulate job creation, strengthen local industries, and support youth livelihoods. Instead, he said, it risks increasing unemployment by making it more expensive for Kenyan firms to assemble products locally.
Concerns Over Local Assembly Sector
Seantor Karungo singled out the local assembly of mobile phones and electric motorbikes as sectors most likely to be affected by the proposed tax changes.
He noted that these industries have created employment opportunities for technicians, sales agents, and young entrepreneurs while also supporting Kenya’s growing digital and creative economy.
The proposed measures, he argued, would make locally assembled products more expensive by increasing taxes on components, spare parts, raw materials, and production inputs. At the same time, imported finished products would benefit from tax relief, creating what he described as an uneven playing field.
Karungo wa Thang’wa questioned why locally assembled phones could become approximately 44 percent more expensive while imported phones could see prices fall by around 24 percent under the proposed framework.
Call for Fair Tax Treatment
The Senator clarified that his position was not aimed at penalising importers, who also contribute to the economy. Instead, he called for equal tax treatment between imported finished goods and the inputs required by local manufacturers.
“If the Government has zero-rated or exempted finished imported products, then the same treatment must apply to the components, raw materials, spare parts and production inputs used by local assemblers,” he said.
He warned that failure to make the changes could force companies to scale down operations, discourage investment, and increase costs for consumers, including boda boda riders who rely on electric motorbikes.
Push to Protect Jobs and Industry
Senator wa Thang’wa said the Bill, in its current form, contradicts Kenya’s ambition of becoming a regional manufacturing and e-mobility hub.
He urged Members of Parliament to either amend the contentious provisions or reject the legislation altogether, arguing that protecting local assembly industries is essential for safeguarding jobs and supporting economic growth.
The Senator maintained that Parliament’s decision should prioritise workers, manufacturers, boda boda operators, and young Kenyans seeking sustainable livelihoods.
