Introduction

Each financial year, the Government of Kenya publishes a national budget outlining its projected expenditures and revenue streams. However, this budget often results in a deficit, necessitating the sourcing of additional revenue to bridge the gap between income and spending. To address this shortfall, the government introduces a Finance Bill, which proposes measures to enhance revenue collection. Any remaining deficit is typically financed through both domestic and external borrowing.

Since the Kenya Kwanza administration assumed office, the drafting of Finance Bills has taken a markedly different approach compared to previous governments. There has been a strong public expectation that this administration would reduce the tax burden or at least maintain the status quo. Contrary to these expectations, however, the government has consistently introduced new taxes annually. The most notable case was the Finance Bill 2024, which sparked widespread protests led by Gen Z activists. The public outcry was so significant that the Bill failed to pass into law. Subsequently, a few tax measures were enacted through the Tax Laws (Amendment) Act, 2024, which came into effect on 27th December 2024.

Finance Bill 2025

The green copy of the Finance Bill 2025 was published on 6th May 2025. It outlines a series of proposed tax changes for the 2025/26 financial year. Corplite Consulting has conducted a thorough analysis of the Bill. Unlike conventional tax reviews that primarily serve compliance or legal teams, this analysis offers a broader, policy- oriented perspective. The Finance Bill 2025 introduces sweeping reforms to Kenya’s  tax framework.   Its key objectives are to broaden the tax base and drive targeted industrial development.t the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradisematic country, in which roasted.