Mbadi Downplays Plans to Increase Taxes in Finance Bill 2025

In Summary 

• Treasury CS John Mbadi downplays reports of hiking taxes in the Finance Bill 2025 after experts project more tax burden for Kenyans in the next financial year.
• Government mulls over policy to promote savings culture among Kenyans. Labour CS Alfred Mutua revealed that the policy will target Kenyans working in both the formal and the informal sectors. 
• Kenyan investors show a strong appetite for short-term government securities. In the week ending March 4, it was reported that the bids reached Ksh40.7 billion, which was also almost double the advertised amount of Ksh24 billion.
• The National Treasury has proposed a bill that sets the stage for the government to identify cryptocurrency owners. The move is aimed at enhancing government efforts of dealing with tax cheats, criminals while also addressing loopholes identified in money laundering and terrorism financing.
• The Nairobi Securities Exchange (NSE) recorded one of the biggest losses following the imposition of tariffs by the President Donald Trump administration. KCB Group, Safaricom and Equity Group were among the entities that accounted for the Ksh37.42 billion loss.

‍Mbadi Responds Over Plans for Tax Hike in Finance Bill 2025 

Treasury Cabinet Secretary John Mbadi has clarified that the government is yet to publish the Finance Bill 2025. Mbadi was responding to a report by the Standard, which indicated that the government would increase taxation in the next financial year. 

According to the Mbadi, the Ministry is currently engaging with various stakeholders, including government institutions, on the tax proposals that will be included in the Finance Bill. However, he downplayed reports that suggested the current taxes, such as Value Added Tax (VAT) would be increased from the current rate of 16% to 18%.

The CS added that the proposed tax proposals in the Finance Bill would be published in the local dailies with an explainer included for each tax measure.

"We will publish the Finance Bill, and we will put an explainer again the way we did in December with the tax laws. If there is any proposal by the National Treasury, we will put an explainer in the newspapers so that Kenyans can understand," Mbadi remarked during the launch of the electronic Government Procurement (e-GP) system on April 7.

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‍Govt Mulls Over Policy to Encourage Savings Culture

In a report by the Standard, the government is mulling over a policy to encourage a savings culture among Kenyans. The policy will target Kenyans who work in both the formal and the informal sectors of the economy.

Labour CS Alfred Mutua, who was speaking during a judges conference, expressed concern over the high number of Kenyans who are becoming dependent on their children once they grow older. Mutua noted that such incidents were becoming common because of poor savings culture among Kenyans.

Therefore, through a policy, the CS noted that many Kenyans would begin to save through institutions such as the National Social Security Fund (NSSF).

‍Kenyan Investors Opt for Short-term Treasury Bills 

‍The People’s Daily has reported increased interest by Kenyans in investing in short-term government securities. In the week ending March 4, it was reported that the bids reached Ksh40.7 billion, which was also almost double the advertised amount of Ksh24 billion.

Analysis of the investment indicated that Kenyans were more interested in the 364-day Treasury Bills, which had an interest of 10.9 per cent. Investors bid Ksh29.92 billion.

The 91-day Treasury Bills attracted bids of Ksh11.18 billion while offering an interest rate of 8.6 per cent. However, the 182-day Treasury Bills only saw investors bid Ksh4.4 billion against an advertised amount of Ksh10 billion.

Read Also: Why Treasury Wants to Scrap Off 364-Day T-Bills

‍Government to Identity of Cryptocurrency Owners in New Bill 

The National Treasury has published the Virtual Asset Service Providers Bill, 2025, which seeks to regulate virtual asset service providers like cryptocurrencies. According to the Business Daily, the government will be able to identify shareholders, beneficiaries and owners of the service providers.

The move is aimed at enhancing government efforts of dealing with tax cheats, criminals while also addressing loopholes identified in money laundering and terrorism financing.

In the new bill, regulatory authorities such as the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) will impose sanctions on providers who violate anti-money laundering rules.

‍NSE Records Biggest Loss After Trump Tariff

The Nairobi Securities Exchange (NSE) recorded one of the biggest losses following the imposition of tariffs by the President Donald Trump administration.

The Business Daily reports that KCB Group, Safaricom and Equity Group were among entities that accounted for the Ksh37.42 billion loss.

The losses have been credited to the uncertainties in the global market, which has raised fears of global trade wars amid reports of a recession in some countries.

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