The Kenya government will focus on enhancing revenue collection and improving tax administration instead of introducing new taxes in the upcoming Finance Bill 2025, according to Government Spokesperson Isaac Mwaura.
Speaking at a press briefing on Monday, Mwaura emphasized that the government’s fiscal strategy will center on boosting efficiency in revenue collection and promoting transparency in public spending.
“Our immediate priority is to strengthen existing systems to maximize revenue without necessarily introducing new tax measures,” Mwaura stated.
He further clarified that any consideration of a new Finance Bill will depend on the revenue performance in the 2024/25 financial year. A final decision will be made after April 30, once the national budget process concludes.
This policy shift comes in the wake of widespread public backlash in mid-2024, when proposed tax hikes on essential goods such as vehicles and bread sparked street protests and criticism from civil society. In response, a parliamentary committee recommended scrapping several controversial tax provisions.
By adopting a revenue-first approach, the government aims to meet its fiscal obligations while easing pressure on households and businesses, and restoring public confidence in its financial management practices.
The move is also seen as part of a broader effort to create a more business-friendly environment and support economic recovery amid ongoing global and regional economic challenges.
