The government has sought to reassure the public that the Finance Bill 2025 will not introduce any new taxes, clarifying that the bill aims to alleviate the high cost of living in the country.
Treasury Cabinet Secretary John Mbadi emphasized that the proposed changes are designed to provide tax relief to citizens, while also trimming the national budget by Ksh.133 billion.
The National Assembly received the bill on Wednesday, following its approval by the Cabinet on Tuesday. While the government has yet to release full details of the bill, officials are confident that it addresses public concerns, particularly regarding the potential for new taxes.
“We have not introduced any tax measures which will add the burden on the taxpayer,” CS Mbadi told Citizen TV.
He went on to highlight several proposed measures aimed at reducing the existing tax burden. Notable among these are tax exemptions on tea and coffee packaging, a reduction in the digital asset tax rate from 3 percent to 1.5 percent, and the exemption of retirees’ gratuity payments from tax.
Additionally, the government plans to amend several key tax laws, including the Income Tax Act, VAT Act, Excise Duty Act, and the Tax Procedures Act, as part of broader fiscal reforms. These changes aim to simplify the tax system and make it more efficient, easing the financial pressure on individuals and businesses.
Beyond easing taxes, the government has committed to reducing the proposed Ksh.4.3 trillion budget by Ksh.133 billion, lowering it to approximately Ksh.4.2 trillion. According to Mbadi, these cuts will primarily affect the national government’s operational expenses, such as travel, administrative costs, and other non-essential spending.
Finance Bill 2025 Moves To Public Participation
Mbadi explained that the changes in the Finance Bill reflect the government’s intent to listen to the people, especially after last year’s widespread protests led by Gen Z against the Finance Bill 2024. The government’s more cautious approach this year is aimed at avoiding further public discontent.
As the bill moves forward, the National Assembly’s Finance Committee will lead the charge for public participation. The committee will collect feedback from the public and stakeholders before the bill advances to the next stage of the legislative process.
National Assembly Speaker Moses Wetang’ula confirmed that the budget estimates have been sent to the relevant departmental committees and the Budget and Appropriations Committee. These bodies will conduct thorough reviews and engage with stakeholders to ensure that the bill reflects the nation’s priorities.
Wetang’ula also urged lawmakers to handle the debate on the Finance Bill with responsibility and transparency. With MPs beginning a month-long recess on Thursday, May 1, he warned against rejecting the bill without thoroughly reviewing its contents.
“If you oppose the bill, do so here—not at funerals or before schoolchildren who cannot respond. You do not look good when you dramatize fiscal debates in public while staying silent in this House,” Wetang’ula stated.
Minority Leader Junet Mohammed echoed this sentiment, urging MPs to avoid spreading misinformation. “Let us tell the public what is in the Finance Bill. If there are no more taxations, there are no more taxations. Let us not import things into the Finance Bill,” he added.
Despite the government’s reassurances, the Finance Bill 2025 has not yet been made public, leaving the opposition skeptical. Some leaders have raised concerns that the bill may still include hidden tax burdens, fueling suspicion among the public.
