The government is taking deliberate steps to avoid the widespread protests witnessed last year in response to the Finance Bill, 2024.  

The Finance Bill, 2025, appears more measured and has been developed using a consultative approach that builds on lessons from the public backlash in 2024.

When the Cabinet ratified the Finance Bill, 2025, on April 29, it called it a bold budget with no new taxes. President William Ruto said that its aim is to ease the cost of living and restore public trust.

In a memo from the State House, Nairobi, President Ruto directed all Cabinet Secretaries (CSs) to work closely with the National Treasury to determine whether further downward adjustments are still possible. Why? The government is committed to maintaining a fiscal deficit of no more than 4.5% of the GDP for the financial year 2025/26, down from 5.1% in 2024/25.

On May 6, National Treasury CS John Mbadi explained that the budget process is now open and transparent, unlike the previous “Siri Kali” approach, which was secretive. He stated that the government had increased public participation, listened to feedback, promoted transparency in budget-making, and introduced no significant new tax measures.

Speaking during a Budget 2025 Town Hall at Daystar University, CS Mbadi said the current budget is lower than last year’s, with more focus on social sector expenditures. 

On revenue collection, the new Bill is estimated to have less aggressive revenue collection targets. “The 2025 Finance Bill does not introduce major new taxes, with only about Ksh 25 billion – Ksh 30 billion in additional revenue expected, focusing more on tax administration and streamlining existing tax laws,” he said.

In addition, the Finance Bill, 2025, is primarily focusing on tax administration, sealing tax loopholes, streamlining tax collection, and implementing national policy. This is contrary to the Finance Bill, 2024, which placed more emphasis on direct revenue generation. It also aims for tax certainty and predictability, unlike the Finance Bill, 2024, which was more disruptive to businesses and taxpayers.

Last year, more than 50 people lost their lives when the youth-led demonstrations, in protest of the Finance Bill, broke out in June. This forced President Ruto to abandon tax hikes worth Ksh 346 billion, causing a delay in funding from the International Monetary Fund (IMF).

IMF factor

According to Human Rights Watch (HRW), Kenya also experienced protests in 2023 in response to tax proposals in the Finance Bill, 2023. President Ruto signed the 2023 bill into law despite a parliamentary report showing more than 90% of Kenyans opposed it. The tax bills came in the context of an IMF programme that initiated economic measures which increased the cost of living and undermined human rights.

In addition, the HRW stated that neither the government nor the IMF published impact assessments to ensure that the policies they pursued were best for fulfilling people’s economic, social, and cultural rights.  

Fact Box 

• The Finance Bill traces its origins to the colonial period when Kenya, like many other British colonies, adopted the British parliamentary system. 
• The introduction of the Finance Bill was part of the broader legislative and fiscal reforms aimed at establishing a structured and predictable system for public finance management. 
• Since Independence in 1963, Kenya has continued to refine its legislative processes, and the Finance Bill remains a cornerstone of fiscal policy and governance. 
• Each year, the Finance Bill is introduced alongside the national budget, to provide the legal framework for implementing the fiscal policies proposed by the government. 
• The Bill ensures that there is coherence between revenue collection and public expenditure, which is crucial for macroeconomic stability and growth.