Why Treasury wants your Finance Bill 2027 proposals 4 months earlier and how to submit

The National Treasury has officially kicked off preparations for the Finance Bill 2027 nearly four months earlier than the traditional budget-making calendar, inviting Kenyans and stakeholders to submit tax policy proposals.

In a public notice on August 6, 2026, Treasury said the accelerated process is necessary because the 2027/2028 budget cycle will coincide with Kenya's General Election scheduled for August 10, 2027, requiring key fiscal legislation to be enacted before Parliament adjourns ahead of the polls.

The move means the Finance Bill 2027 is expected to be prepared, approved and submitted to Parliament by January 2027 instead of the usual May timeline that Kenyans have become accustomed to.

Treasury explained that the normal budget-making process has been compressed to ensure uninterrupted government operations during the election period.

According to the notice, the Finance Act 2027 must be enacted before Parliament breaks for the elections, making it necessary to begin drafting the legislation in August 2026.

"Year 2027 is an election year, there is need to fast-track the National Fiscal Budget process to ensure smooth government operations," Treasury stated.

The ministry added that early preparation would ensure the Finance Bill is completed and submitted to the National Assembly in January 2027.

Treasury is now calling on members of the public, county governments, national government institutions, private sector players, professional bodies, civil society organizations, religious groups and other stakeholders to help shape the country's next tax laws.

The proposals will inform the drafting of the Finance Bill 2027 as well as Kenya's submissions on East African Community (EAC) customs measures for the 2027/28 regional budget process.

Interested stakeholders have until August 31, 2026 to submit their recommendations.

According to the notice, submissions should focus on practical amendments to Kenya's tax laws or improvements to tax administration.

Each proposal should clearly include:

The specific tax law or provision proposed for amendment.

A concise explanation of the issue being addressed.

Justification supported by evidence or analysis.

Where applicable, the relevant East African Community customs tariff line, policy instrument or measure.

Treasury also encouraged stakeholders to submit proposals touching on:

Common External Tariff (CET) amendments.

Duty Remission Scheme (DRS).

Stays of application under the Common External Tariff.

Other East African Community customs policy measures.

The ministry urged contributors to consider Kenya's current economic realities while preparing their proposals.

It pointed to increasing government expenditure needs, limited capacity to borrow more, and challenges in raising additional revenue.

As a result, Treasury said proposals should be realistic, fiscally responsible and aligned with the government's Bottom-Up Economic Transformation Agenda (BETA), which focuses on economic growth through value chain development.

The ministry said the recommendations received will help strengthen domestic revenue mobilisation while improving regional competitiveness and promoting sustainable economic growth.

One of the biggest changes under the revised timetable is that Kenyans could see the Finance Bill 2027 months earlier than usual.

Traditionally, Finance Bills become publicly available around May before being debated and enacted by Parliament ahead of the new financial year beginning July 1.

However, under the revised election-year schedule, the Bill is expected to be transmitted to Parliament by January 29, 2027, allowing legislators sufficient time to debate and pass it before campaigning intensifies.

The early release is expected to give taxpayers, businesses and lobby groups more time to scrutinise proposed tax measures.

The compressed schedule significantly reshapes Kenya's entire budget-making process.

Some of the major milestones include:

Draft Budget Review and Outlook Paper expected by August 15, 2026, with Cabinet approval by August 30.

Sector Working Groups to prepare budget proposals between September 7 and October 2, 2026.

Draft Budget Policy Statement expected by November 30, 2026.

Budget Policy Statement, Division of Revenue Bill and County Allocation of Revenue Bill submitted to Parliament by November 30, 2026.

Medium-Term Expenditure Framework tabled in Parliament by January 29, 2027.

Finance Bill 2027 submitted to Parliament by January 29, 2027.

Appropriation Bill expected in Parliament by March 8, 2027.

National Treasury Cabinet Secretary to deliver the 2027/28 Budget Statement on March 18, 2027.

Parliament expected to pass both the Finance Bill and Appropriation Bill by March 31, 2027.

The invitation comes just weeks after the National Treasury indicated it would begin public participation on broader income tax reforms, including a review of Pay As You Earn (PAYE) tax bands.

The latest notice forms part of Treasury's constitutional obligation to involve Kenyans in policy formulation and public finance decisions.

Stakeholders can submit their proposals through hard copies delivered to the National Treasury or electronically via submissions@treasury.go.ke before the August 31 deadline.

The proposals received will be considered during the preparation of the Finance Bill 2027 and Kenya's position on East African Community customs measures for the 2027/28 financial year.