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New taxes likely in 2025, says Finance chair Kimani Kuria

Kuria Kimani said that new taxes might be necessary to finance the proposed Sh4.26 trillion budget for the 2025/26 financial year.

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by JAMES MBAKA

News08 April 2025 - 12:36
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In Summary


  • According to Kuria, the National Treasury will need to assess data from the last quarter of the financial year to evaluate the availability of revenue from these sources before finalizing the budget.
  • Heavy taxation in the controversial Finance Bill 2024 triggered nationwide protests, leading to President William Ruto rejecting several proposed revenue-raising measures.

National Assembly Finance Committee chairperson Kimani Kuria. PHOTO/Screengrab. 
National Assembly Finance Committee Chair Kimani Kuria has hinted that the government could introduce a fresh wave of taxes in the Finance Bill, 2025.

His remarks appear to contradict recent assurances by National Treasury Cabinet Secretary John Mbadi, who stated that the government does not intend to impose any new taxes on Kenyans.

Speaking on NTV on Tuesday, the Molo Member of Parliament insisted that new taxes might be necessary to finance the proposed Sh4.26 trillion budget for the 2025/26 financial year.

Saying that national expenditures are typically financed through three main sources - tax measures, appropriations-in-aid, and donor funding- Kimani said a review of the revenue raised would inform the next steps.

According to Kuria, the National Treasury will need to assess data from the last quarter of the financial year to evaluate the availability of revenue from these sources before finalizing the budget.

“The question becomes, is that sufficient to finance the budget? If that is not sufficient, there will be additional tax measures to raise revenue to fund the budget,” he said.

“But if there is evidence to show that the existing tax measures, the appropriations-in-aid, and the donor commitments are sufficient to finance the budget ceilings, then there will be no need for a Finance Bill,” Kuria added.

Heavy taxation in the controversial Finance Bill 2024 triggered nationwide protests, leading to President William Ruto rejecting several proposed revenue-raising measures.

The demonstrations culminated in a dramatic breach of Parliament as protesters stormed the streets of Nairobi in June 2024.

Kuria noted that the size and scope of the 2025/26 budget would ultimately determine whether a new Finance Bill is necessary—an issue already stirring significant debate among Kenyans online.

Given the current revenue shortfall and the higher budget targets indicated in the Budget Policy Statement (BPS), Kuria acknowledged that the introduction of new taxes may be unavoidable.

“When the Budget Committee is conducting public participation, the discussions are usually about the need for more funding for roads, health, dams, and other state departments. On the other hand, when the Finance Committee holds public participation on the Finance Bill, it’s all about opposing any additional taxes. The contrast between the two is like heaven and hell,” Kuria said.

He emphasized that unless budget cuts are made to the already approved BPS, Kenyans should prepare for additional taxes in the upcoming fiscal year. This includes a proposed Sh49.48 billion allocation to Parliament.

On Monday, CS Mbadi denied that the government is planning to write a new finance Bill, saying such reports are inaccurate.

"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," Mbadi stated.

"I do not know where you are getting the information you are sending out there from. I have to sign the proposal before it can reach the Parliament. I want to confirm that I have not done that."

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