On Thursday, the National Assembly passed the Finance Bill 2025, moving it one step closer to becoming law as it heads to President William Ruto for approval.
MPs voted in favor of the bill after reviewing key recommendations from the Finance and Planning Committee, led by Molo MP Kuria Kimani. The bill outlines how the government plans to raise funds to support its Ksh4.29 trillion budget for the 2025/2026 financial year.
However, lawmakers dropped a controversial proposal that would have allowed the Kenya Revenue Authority (KRA) to access personal and financial data from citizens. This clause had sparked major debate, with critics warning it could violate privacy rights.
The removed clause, known as Clause 52, would have changed the Tax Procedures Act by eliminating protections that stop businesses from sharing customer data with KRA. Treasury CS John Mbadi had backed the idea, arguing it would help improve tax collection and reduce cheating by high-income earners.
Aside from that, the bill includes several changes to tax laws such as VAT, excise duty, income tax, and import levies. It also aims to seal loopholes used to siphon money from public funds.
Last year’s Finance Bill 2024 sparked massive protests across Kenya, with citizens opposing tax hikes. That unrest led to the deaths of several young demonstrators and forced President Ruto to reject the bill. This time, the government appears to be taking a more cautious approach.
Treasury CS Mbadi emphasized that the 2025 bill aims to make the tax system fairer and easier to understand, while still boosting government revenue.
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