“We Are Not Targeting M-Pesa!”- CS John Mbadi Clears Air On Proposed Digital Taxes In Finance Bill 2026
National Treasury Cabinet Secretary John Mbadi has moved to reassure anxious citizens that the government will not impose any new or extra charges on M-Pesa transactions under the contentious Finance Bill, 2026.
Speaking during an open public engagement forum at Jevanjee Gardens in Nairobi, Mbadi addressed growing public panic, clarifying that the state’s latest tax raid is aimed squarely at multi-billion dollar foreign digital card companies rather than ordinary mobile money users.
Clarification to Safaricom
To prevent market jitters, Mbadi revealed that top Treasury officials held high-level discussions with Safaricom management last Friday to break down the exact mechanics of the proposed taxation framework.
“We sat with Safaricom last Friday, we discussed this, and they have understood very clearly that the platforms we are targeting are these card providers, these people who provide the platform for doing business,” Mbadi explained. “We are not introducing any other extra charges that are going to affect money transfer through M-Pesa.”
Going After Untaxed Global Giants
The Cabinet Secretary explicitly pointed out that international card payment processors have been reaping massive profits from Kenya’s booming digital economy while repatriating revenues without paying local corporate taxes. Using a practical example, Mbadi highlighted the tax loopholes the Finance Bill, 2026 intends to seal.
“For example, I have a Visa card in my pocket. I use that Visa card. The bank that gives me the Visa card pays the owner of that platform, and most of them are not even Kenyans,” the CS noted. “That person pays no tax to the Kenyan government, and that is what we are saying is not fair.”
According to the Treasury boss, the new legislative amendments are strictly designed to expand the tax base by capturing transactions handled by non-resident financial service providers, ensuring a level playing field for indigenous fintech platforms.
