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National Treasury Cabinet Secretary John Mbadi on Wednesday, June 12, 2025, delivered the 2025/26 Budget Policy Statement in Parliament, marking his first budget presentation since taking office.
In a significant and emotional moment, he honoured Kenyans who lost their lives during protests sparked by controversial finance laws in previous years.
Mbadi acknowledged that the freedoms Kenyans enjoy today have come at a great cost, citing the events of 2023 and 2024 as clear indicators of public resistance to policy decisions viewed as burdensome.
He pointed out that in 2023, opposition to the Finance Act was led by the Minority side in Parliament, bolstered by political mobilisation from the then ODM Chairman.
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National Treasury Cabinet Secretary John Mbadi on Wednesday, June 12, 2025, delivered the 2025/26 Budget Policy Statement in Parliament
That resistance continued into 2024 when proposed changes in the Finance Bill triggered nationwide protests.
“These actions in the two years regrettably resulted in the loss of lives and destruction of property and adversely impacted the economic lives of many,” Mbadi told the House.
He then called for a minute of silence in memory of those who died in the 2024 protests. “May their souls continue resting in eternal peace,” he said.
Mbadi stressed that no life should be lost, and no property should be destroyed again because of policy decisions.
He said that the message from Kenyans was received loud and clear. Since assuming office at the National Treasury, he assured the public that he would prioritise reducing the tax burden.
In that regard, he confirmed that the Finance Bill 2025 does not introduce any new taxes or increase current tax rates.
Instead, the government will focus on administrative reforms aimed at enhancing revenue collection without imposing additional pressure on taxpayers.
These reforms include simplifying and clarifying tax laws to make them easier to understand and implement, with the goal of improving compliance.
A key part of the Treasury’s new approach is the rationalisation of tax expenditures.
Mbadi explained that the amount of revenue forgone through tax incentives has increased significantly, from Sh393.1 billion in 2022 (2.9% of GDP) to Sh510.6 billion in 2023 (3.4% of GDP).
He noted that while tax incentives are often intended to encourage investment or growth in certain sectors, they have also led to distortions and inequalities in the tax system.
To address this, the Finance Bill 2025 proposes reforms that will reduce unnecessary tax expenditures.
These changes are in line with the National Tax Policy and the Medium-Term Revenue Strategy.
Parliament of Kenya
The Treasury expects to raise an additional Sh30 billion from these measures contained in the Finance Bill 2025.
Mbadi said the government’s focus will be on fairness, equity, and efficiency in the tax system, prioritising clarity over complexity, and compliance over coercion.
The CS also reaffirmed the Treasury’s commitment to responsive governance, shaped by the voice and experience of the Kenyan people.