Just a day after Treasury Cabinet Secretary John Mbadi denied claims of introducing new taxes in the Finance Bill 2025, the National Assembly Finance Committee Chair Kimani Kuria issued contradicting remarks, acknowledging the possibility of more taxes in the next financial year.
Speaking on NTV on Tuesday, the Molo Member of Parliament (MP) clarified that new taxes could be increased to finance the proposed Ksh4.26 trillion budget for the 2025/26 financial year.
MP Kuria explained that three sources of revenue finance national expenditures: tax measures, aid in appropriations, and donor finance. Therefore, the national treasury would need to evaluate the data on how much is available through those sources of revenue in the last quarter of the financial year to anticipate budgets.
“The question becomes, is that sufficient to finance the budget? If that is not sufficient, there will be additional tax measures to raise additional revenue to fund that budget,” he stated.
“But in the event that there is evidence to show that the already existing tax measures, the appropriation in aid raised, and the donor commitments we have are sufficient to finance the ceilings, then there will not be a need for a finance bill.”
In a nutshell, Kuria revealed that the 2025/26 financial year budget will determine the need for a fresh finance bill, something that has already been creating a buzz among Kenyans online.
Since a shortfall has already been experienced this year, and the Budget Policy Statement (BPS) has already demonstrated a higher budget, the MP acknowledged that new taxes may be imminent.
“The discussions we have when the budget committee is conducting public participation on the budget, at the same time the finance committee is conducting public participation on the finance bill, the difference in the two meetings is like heaven and hell,” the Finance Committee chair stated.
“The budget committee discussions are about wanting additional money for roads, health, dams, including the state departments, etc. The finance committee discussions are about not adding any more taxes. How do you marry the two?”
Therefore, the bottom line remains that if no cuts are made in the approved BPS, Kenyans will need to brace for more taxes to fund next year’s budget, which includes a Ksh49.48 billion allocation to Parliament.
On Monday, CS Mbadi clarified there was no proposal for a new tax bill and that reports claiming otherwise were inaccurate.
“I do not like negatively responding to the media because they help keep us in check. I want to state that we have not concluded the budget process, and I want to inform you that we are looking at the proposals from various sectors as we speak,” Mbadi stated.
“I do not know where you are getting the information you are sending out there from. I have to sign the proposal before it can reach the Parliament. I want to confirm that I have not done that.”
Last year’s rejected Finance Bill 2024 led to an increasingly charged public uproar, which culminated in the deadly Gen Z protests of June and July.
https://www.facebook.com/100064288795404/posts/pfbid027pt5Z7nSerHVumeJw6e4rsX2A6BLstLYtNkHgML213rQwrwXx2Bsb5PSb31Xu9YEl/?app=fbl
