Treasury Cabinet Secretary (CS) John Mbadi has firmly denied recent claims that the government is planning to introduce Value Added Tax (VAT) on essential goods like bread, milk, and maize flour (commonly referred to as unga) in the proposed 2025 Finance Bill.
Speaking at a town hall meeting held in Kibera, Nairobi, CS Mbadi addressed growing concerns by clarifying that these rumours were not based on the actual contents of the bill.
He dismissed the allegations as false and described them as propaganda allegedly created and spread by opposition groups for political gain.
Mbadi emphasized that none of the mentioned basic household commodities — bread, milk, or unga — are subject to VAT in the Finance Bill that has been officially submitted to Parliament.
“Unfortunately, what people are discussing is not the actual Finance Bill before the National Assembly. That version being circulated is pure propaganda. In the real bill currently under review, there is no clause introducing VAT on bread, milk, or maize flour,” Mbadi clarified.
He added, “The bill being talked about on social media is not the one I presented. It is a false version created by the opposition to mislead the public.”
No VAT Increase from 16% to 18%
CS Mbadi also addressed another widespread rumour — that the government plans to increase VAT from the current rate of 16% to 18%. He assured Kenyans that the government has no such plan and dismissed the reports as baseless.
“There has never been a time when the government considered raising VAT from 16% to 18%. That claim is simply not true. I want to give Kenyans full assurance on that,” he stated.
Clarifies on Alleged Tax on Newborn Babies
Mbadi also took time to respond to concerns that the Finance Bill includes taxation on neonatal care or newborn children. He labelled these reports as false and misleading, saying they were part of a broader propaganda campaign meant to incite public outrage.
According to the Treasury CS, these allegations are designed to stir emotions and create unnecessary panic among citizens. He urged Kenyans to be cautious about what they believe and to verify information before spreading it further.
Tensions Rise Amid Public Anxiety
Mbadi’s public statements come at a time when anxiety is building across the country over the 2025 Finance Bill. Many Kenyans, still recovering from the tax-related tensions of 2024, have been voicing concerns about possible new tax measures.
Last year, large protests broke out across the country in response to the 2024 Finance Bill, which introduced several unpopular tax changes. Despite strong public opposition, Parliament still passed those proposals.
Given that history, the current debate over the 2025 bill has drawn increased attention from the public, with social media platforms flooded with claims — both true and false — about what the bill contains.
Urges Kenyans to Read the Official Finance Bill
In response, CS Mbadi urged citizens to make an effort to read and understand the actual Finance Bill instead of relying on misinformation circulating online or from politically motivated sources. He encouraged open dialogue based on facts rather than rumours or emotional reactions.
“I’m asking you all — as fellow Kenyans — to take time and go through the real Finance Bill. Let’s not be quick to spread misinformation. Yes, we may have political differences or different opinions about the government, but let’s deal with facts,” he appealed.
Mbadi concluded by emphasizing the importance of unity and truthfulness in national conversations, particularly those involving critical economic policies. He called on all Kenyans to be responsible in how they share information, especially when it has the potential to influence national sentiment or spark unrest.
Join Gen Z New WhatsApp Channel To Stay Updated On time https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
