TIFA Survey: Finance Bill 2025 driving up living costs for majority of Kenyans
The report reveals that only a small number of citizens believe the bill will improve public services, with the majority reporting a negative impact on their finances.
The report reveals that only a small number of citizens believe the bill will improve public services, with the majority reporting a negative impact on their finances.
The bill now awaits President William Ruto’s assent.
The group criticised the government’s focus on increasing tax revenue without addressing wastage, duplication, and misplaced spending priorities.
He cautioned that imposing taxes without clear accountability and efficient use of public funds could harm Kenyans and stall economic growth.
The software developer behind a public feedback platform on the 2025 Finance Bill was dragged into a whirlwind of fear, confusion, and public outcry.
The proposed legislation aims to alter the VAT classification of raw materials and inputs used in the production of pharmaceuticals, shifting them from a "zero-rated" to an "exempt" status.
The Association of Real Estate Stakeholders Kenya (RESA) urged Parliament to urgently reconsider or suspend several “punitive” tax clauses that, they say, could have far-reaching negative effects.
Among the contested proposals is one that allows the Kenya Revenue Authority to access personal data and trade secrets automatically.
Finance and Planning Committee Chairperson Kuria Kimani, who is also the Molo MP, said this year’s approach will ensure more Kenyans can be heard without having to attend physical meetings.
In addition to written submissions, the Committee will hold face-to-face consultations with various stakeholders to collect further perspectives.
This new VAT, if approved, would apply to popular streaming services such as Netflix, Showmax, and local platforms offering digital radio and TV content.
The Treasury has proposed raising the tax rate on fringe benefits by over three-fold, from the current rate to a flat 30%.