The Government has addressed reports of the Finance Bill 2025, with Kenyans already fretting over claims that the state is eying an increase of the Value Added Tax (VAT) from 16 per cent to 18 per cent as well as a spike of the Pay As You Earn (PAYE) for salaried individuals from current 35 per cent to 37.7 per cent.
The Finance Bill 2025 making rounds online claimed that a total of 8 tax and levy hikes were already tabled in Parliament with land and internet sectors affected.
For instance, VAT was reportedly earmarked for increase from 16 per cent to 18 per cent while land tax would be introduced at a rate of 10 per cent of the total value of the parcel regardless if the land is owned or leased.
Other purpoted levy hikes were 5 per cent farm input, 15 per cent levy on internet bundles, green levy tax on sugar and plastic byproducts, 1 per cent of payments made to paybills and introduction of Mazingira Tax similar to the defunct eco-levy contained in the Finance Bill 2024.
However, A week ago, Mbadi refuted claims that the Finance Bill 2025 had already been released, noting that the state was still in the budgeting process and was still engaged with the stakeholders.
"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," the CS said.
Meanwhile, Government Spokesperson Isaac Mwaura on Monday reiterated that Finance Bill 2025/26 was yet to be tabled, refuting reports that a version of the proposal was already in the public domain.
In an address to the press, Mwaura stated that the release of the proposal would only occur after April 30 this year following the release of the 2025 Draft Budget Policy, whose statement was made public in February 2025, and subsequently approved by Parliament.
"Contrary to misinformation circulating online, the 2025/26 Budget Process is still underway. No Finance Bill 2025 has been proposed, drafted, or tabled in Parliament. As per established timelines, revenue-raising measures such as the Finance Bill only follow the release of the Draft Budget after April 30th. Kenyans will be fully engaged through public participation once the Finance Bill is officially submitted to Parliament," Mwaura told the press.
"The government unequivocally states that there is no finance bill 2025 tabled anywhere yet and such outrageous claims should be shunned. Accordingly, Kenyans will have the opportunity to interrogate any revenue raising measures through public participation, only after the draft budget and finance bill have been released by the National Treasury and submitted to Parliament." He added.
The BPS, which has already been passed by the National Assembly, estimates the 2025/26 financial year budget at Ksh4.26 trillion, a significant spike from this year's Ksh3.6 trillion.
