Aasai

Treasury Cabinet Secretary John Mbadi has assured Kenyans that the Finance Bill 2025 will not introduce any new taxes, a move he says is aimed at easing the rising cost of living. Speaking after the bill was tabled in the National Assembly, Mbadi emphasized that the governments focus is now on giving tax relief to ordinary citizens while cutting unnecessary government expenditures.

Among the key changes proposed are the exemption of tea and coffee packaging from tax, halving the crypto tax rate from 3% to 1.5%, and scrapping tax on retirees’ gratuity payments. Mbadi stated that amendments are being made to major tax laws including the Income Tax Act, VAT Act, Excise Duty Act, and Tax Procedures Act.

To manage the countrys finances more efficiently, the government plans to reduce the Ksh.4.3 trillion budget by Ksh.133 billion, targeting cuts in travel and other non-essential operations. Mbadi said the revisions aim to avoid last year’s backlash witnessed during Gen Z-led protests against the Finance Bill 2024.

 As the bill now heads to the National Assembly Finance Committee for public participation, Speaker Moses Wetangula urged MPs to debate it thoroughly in Parliament and avoid politicizing it in public forums. Minority Leader Junet Mohammed echoed the call for transparency, saying the public deserves the truth, not assumptions.