Kenya’s budget plans for 2025–26 don’t include any new taxes because of the protests last year

The finance minister declared that Kenya’s government will neither raise taxes or impose new ones in this year’s budget proposals, following fatal demonstrations against the government’s revenue-raising efforts last year.

Last June’s youth-led marches claimed over 50 lives, forcing President William Ruto to rescind tax hikes worth 346 billion shillings ($2.68 billion) and delaying International Monetary Fund assistance.

At a televised meeting late Tuesday, Finance Minister John Mbadi stated, “The finance bill doesn’t have to always adjust tax rates upwards.”

“The finance bill of this year is more on tax administration and trying to seal the loopholes and also make tax collection efficient.”

A finance bill, which is often the government’s tool for changing laws to increase revenue collection, has been forwarded to parliament for passage as part of the process leading up to next month’s 2025–2026 (July–June) budget presentation.

Additionally, spending recommendations with a budget deficit of 4.5% of GDP and a total expenditure of approximately 4 trillion shillings have been brought to parliament for discussion and approval.

“There are no new major tax measures,” Mbadi stated, going on to say that the finance bill for this year aims to raise an additional 25–30 billion shillings.

The tax bill’s provision, which, if approved by parliament, would provide the tax authority access to people’s and companies’ financial data, enabling it to identify instances of tax evasion, has drawn criticism.

Many wealthy individuals do not pay their due share of taxes, according to Mbadi, who supported the suggestion by pointing to the legal clause that prevents authorities from obtaining specific data.

“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,” added the politician.