Govt Spokesperson Shares Dates on Release of Finance Bill 2025

Government Spokesperson Isaac Mwaura on Monday reiterated that Finance Bill 2025/26 was yet to be tabled, refuting reports that a version of the proposal was already in the public domain, insinuating an increase in 8 different tax and levy categories.

Why It Matters: Kenyans were already fretting over the false Finance Bill 2025 which claimed that the state was eying an increase of the Value Added Tax (VAT) from 16 per cent to 18 per cent as well as a spike of the Pay As You Earn (PAYE) for salaried individuals from current 35 per cent to 37.7 per cent.

In an address to the press, Mwaura stated that the release of the proposal would only occur after April 30 this year following the release of the 2025 Draft Budget Policy, whose statement was made public in February 2025, and subsequently approved by Parliament.

"Contrary to misinformation circulating online, the 2025/26 Budget Process is still

underway. No Finance Bill 2025 has been proposed, drafted, or tabled in Parliament.

As per established timelines, revenue-raising measures such as the Finance Bill only

follow the release of the Draft Budget after April 30th. Kenyans will be fully engaged

through public participation once the Finance Bill is officially submitted to Parliament," Mwaura told the press.

"The government unequivocally states that there is no finance bill 2025 tabled

anywhere yet and such outrageous claims should be shunned. Accordingly, Kenyans

will have the opportunity to interrogate any revenue raising measures through a

thorough public participation, only after the draft budget and finance bill have been

released by the National Treasury and submitted to Parliament."

The false Finance Bill 2025 making rounds online claimed that a total of 8 tax and levy hikes were already tabled in Parliament with land and internet sectors affected.

For instance, VAT was reportedly earmarked for increase from 16 per cent to 18 per cent while land tax would be introduced at a rate of 10 per cent of the total value of the parcel regardless if the land is owned or leased.

Other purpoted levy hikes were 5 per cent farm input, 15 per cent levy on internet bundles, green levy tax on sugar and plastic byproducts, 1 per cent of payments made to paybills and introduction of Mazingira Tax similar to the defunct eco-levy contained in the Finance Bill 2024.

Coroborated with Treasury CS John Mbadi's earlier statement refuting the existence of the 2025 proposal, the government spokesperson noted that the major intervention thus far is the Budget Policy Statement (BPS), which outlines

the government's strategic priorities and policy goals to guide the National

Government, County Governments, and Independent Constitutional Institutions in

preparing their budgets. 

"The 2025 Budget Policy Statement (BPS) is the third to be prepared under the Kenya Kwanza Administration. The government's fiscal policy for the FY 2025/26 and the medium term places special emphasis on fiscal consolidation to reduce public debt vulnerabilities while providing fiscal space to deliver essential public goods and services," Mwaura added.

"To boost revenues, emphasis will be placed on a combination of tax administrative and tax policy reforms and not an increase of taxes as alleged. The government will also focus on strengthening accountability, transparency, and efficiency in public spending."

A week ago, Mbadi refuted claims that the Finance Bill 2025 had already been released, noting that the state was still in the budgeting process and was still engaged with the stakeholders.

"I do not like negatively responding to the media because they help keep us in check. I want to state that we have not concluded the budget process, and I want to inform you that we are looking at the proposals from various sectors as we speak," the CS spoke at the Electronic Government Procurement system in Nairobi on Monday, April 7.

The BPS, which has already been passed by the National Assembly, estimates the 2025/26 financial year budget at Ksh4.26 trillion, a significant spike from this year's Ksh3.6 trillion.