Kenya’s government has ruled out introducing new taxes or raising existing ones in its upcoming 2025/26 budget proposals, Finance Minister John Mbadi announced, following last year’s deadly unrest sparked by efforts to boost revenue. The move appears aimed at avoiding a repeat of the widespread protests in June 2023, which left more than 50 people dead and led President William Ruto to scrap proposed tax hikes totalling 346 billion shillings ($2.68 billion).
Speaking during a televised meeting on Tuesday evening, Mbadi clarified that this year’s finance bill would focus on improving tax collection methods rather than increasing tax burdens.
“The finance bill doesn’t have to always adjust tax rates upwards,” said Mbadi. “The finance bill of this year is more on tax administration and trying to seal the loopholes and also make tax collection efficient.”
The government has submitted the finance bill to parliament, which traditionally serves as the legal instrument for revising tax laws to enhance revenue. Alongside it, spending proposals for the 2025/26 fiscal year — which runs from July to June — have also been sent to parliament for debate and approval. The total projected expenditure is around 4 trillion shillings, with a planned budget deficit of 4.5% of the gross domestic product.
Mbadi reiterated that the bill contains “no new major tax measures,” but noted the government aims to generate an additional 25 to 30 billion shillings through improved enforcement and administrative reforms.
However, the bill has sparked criticism over a contentious clause that would permit the tax authority to access private financial data of both individuals and businesses, aimed at uncovering tax evasion. Critics have raised privacy concerns, suggesting it gives the government excessive power.
Defending the proposal, Mbadi said that many affluent Kenyans avoid paying their fair share of taxes by exploiting laws that prevent authorities from scrutinising their financial records.
“There are so many people out there operating big bank accounts and they cannot pay tax simply because they are protected by these kind of mischievous laws,” he said.