The Cabinet has approved the Finance Bill, 2025.
The Cabinet meeting chaired by President William Ruto at State House, Nairobi on Tuesday, April 28, 2025, marks a critical step in the government’s strategy to reduce the fiscal deficit and live within its means.
The Bill, which will now head to parliament, focuses primarily on enhancing efficiency, including addressing loopholes related to tax expenditures.
The proposed law seeks to minimise tax-raising measures through a new legislative framework, which might lead to the government introducing new taxes in this Year’s Finance Bill.
The Finance Bill 2025 proposes critical changes to support small businesses by allowing them to fully deduct the cost of everyday tool and equipment in the year of purchase.
The Cabinet members also approved the Public Finance Management (Amendment) Bill, 2024, to strengthen the country’s emergency preparedness.
The amendment aims to equip counties with the financial readiness to respond swiftly to future emergencies, thereby protecting lives, livelihoods and critical infrastructure.
The Cabinet’s decision to approve Finance Bill 2025 comes a year after Kenyans protested about the Finance Bill 2024.
