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The government is taking a new direction with the Finance Bill 2025 and 2025/26 budget, focusing on fiscal responsibility, innovation, and public engagement, without adding new taxes.
According to the National Treasury, the aim is to fund development in smarter, more sustainable ways after months of public concern over rising living costs and economic strain.
The move signals a shift from tax-heavy approaches that have become synonymous with the previous Finance Bills.
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No Major New Taxes
According to Treasury officials, the 2025 Finance Bill will not introduce significant new taxes.
This decision is meant to protect workers’ take-home pay, ease pressure on households, and maintain some economic breathing room for businesses and individuals.
The past few Finance Bills have introduced new taxes such as the Housing Levy, as well as adjustments to VAT, and excise duty for different products.
The government is planning to instead focus on living within its means, aiming for a zero-deficit budget. That means cutting waste, prioritising essential spending, and improving how public money is used.
Proposed Revenue Ideas
To raise funds without adding pressure on taxpayers, the Treasury is turning to technology and better enforcement rather than blanket tax increases.
Some of the proposed changes include:
Digital Traffic Enforcement: A new camera-based system will be used to catch overloaded vehicles and traffic violations. This is expected to improve safety while generating targeted revenue through penalties.
Automation and E-Government Services: More public systems will be digitised to plug revenue leaks, improve compliance, and make service delivery faster and more transparent.
READ ALSO: Treasury announces 7 measures to boost money supply for Kenyans
Public Participation
The Treasury is also planning to increase public engagement during this year’s budgeting process before finalising the Finance Bill.
This new approach comes after the controversial Finance Bill 2024 was withdrawn following deadly protests that broke out in Nairobi, Mombasa and other parts of the country.
Protestors expressed their dissatisfaction with what they considered to be unfair taxation during tough economic times.
In response, the government backed down on some of the proposals, such as the motor vehicle tax and the eco levy on locally manufactured goods.
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Despite these concessions, some critics argued that they were insufficient and called for the entire bill to be abandoned.
After the June 25 2024, protest that ended with the invasion of Parliament, President Ruto withdrew the bill in its entirety.
With public trust in financial management now under pressure, the Treasury’s new direction is as much about communication as it is about numbers.
Officials say the 2025 budget will be a test of how to rebuild confidence while still keeping Kenya’s development on track.
While the full details of the Finance Bill 2025 will be released in the coming weeks, Treasury insiders suggest it’s designed to avoid painful cuts while still enforcing discipline and innovation across government departments.