National Treasury Cabinet Secretary John Mbadi has hinted at new taxes being introduced in the Finance Bill 2025.
Speaking during a recent interview, CS Mbadi noted that the new taxes will not be harmful to Kenyans and will be aimed to protect businesses.
Mbadi emphasized that he does not expect the Finance Bill 2025 to reduce the purchasing power of Kenyans.
National Treasury Cabinet Secretary John Mbadi hints at new taxes being introduced in the Finance Bill 2025. Photo: Courtesy.
“New taxes may be there, but not taxes that will be harmful. You know, you could have taxes that promote businesses. What I don’t expect to be there is to reduce the purchasing power of our citizens. Kenyans have complained that in 2023, they lost quite especially in indirect taxation, in pay as you earn, there were some adjustments for top earners getting above Ksh 500,000 got their salary reduced because the tax rates increased. Everybody also had the housing levy and the Social Health Insurance Fund.”
The CS also highlighted that the National Treasury projects a budget of Ksh4.2 trillion for the financial year 2025-2026.
He pointed out that out of the KSH 4.2 trillion budget, ordinary revenue will generate Ksh2.8 trillion.
The Treasury CS further noted that the government projects to collect Ksh 550 billion from ministerial A-in-A and receive external grants of Ksh 46 billion.
