Treasury Cabinet Secretary John Mbadi has allayed fears over the potential increase of tax rates in the upcoming Finance Bill 2025.
Speaking during a meeting with Bunge la Wananchi on Monday, February 3, Mbadi revealed that there would be no increase in rates for Value Added Tax (VAT).
He added that the other adjustments will not be major adding that employed Kenyans were already feeling the pinch of the taxes that were introduced in Finance Bill 2023.
"Take it from me, we are not increasing VAT at all. Actually, the Finance Bill of this year may not have tax adjustments upwards in terms of rates," he asserted.
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"We cannot overtax Kenyans anymore. We have reached a limit where we are saying no more space for taxation especially on employment income."
The Finance Bill 2025 is expected to be presented in Cabinet before April 18, 2025.
Later on, the CS will table the proposals to Parliament before public participation is done across the country.
Finance Bills contain tax proposals which are used to fund the budget. However, under the Kenya Kwanza administration, Kenyans have lamented the effects of the proposals on their income.
In particular, Finance Bill 2024 had to be withdrawn after the Gen Z protests that were witnessed across the country.
