The Draft Finance Bill 2025 was officially approved by the Cabinet this week and was later presented to the National Assembly on Wednesday, April 30.
This bill proposes several important changes to Kenya’s current tax laws and aims to strengthen the government’s revenue collection system while reducing misuse of public funds.
What the Bill Covers
The Finance Bill 2025 outlines a range of proposed changes to multiple tax laws in Kenya. These include:
- Value Added Tax (VAT) Act
- Excise Duty Act
- Income Tax Act
In addition to the above, the bill also suggests amendments to the Miscellaneous Fees and Levies Act. These changes specifically focus on Import Declaration Fees (IDF) and the Railway Development Levy (RDL), which apply to particular imported goods.
Main Purpose of the Bill
According to the Cabinet, the primary goal of the Finance Bill 2025 is to close gaps and loopholes that have allowed individuals and organizations to avoid paying taxes properly or to unlawfully benefit from tax exemptions and waivers. These loopholes have, over time, been used to drain money from public resources, leading to a loss in government revenue.
The bill, therefore, aims to enhance fairness in taxation, increase transparency, and ensure that all eligible taxpayers contribute their fair share to national development.
Here is the Finance Bill 2025 in full:
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