Finance Bill 2025: Kenyans reject tax, privacy, and housing proposals
The bill, currently under scrutiny by Parliament, has sparked concerns primarily centered around increased taxation on essential goods.
Kenyans across various sectors have voiced strong opposition to several key proposals outlined in the Finance Bill 2025.
The bill, currently under scrutiny by Parliament, has sparked concerns primarily centered around increased taxation on essential goods, privacy infringements, and the removal of tax incentives aimed at promoting affordable housing.
One of the most contentious issues is the proposed shift of essential goods from zero-rated to standard VAT, set at 16%.
Stakeholders argue that this move, scheduled to take effect from July 1, 2025, will inevitably raise the cost of living for ordinary citizens.
They also object to provisions granting the Kenya Revenue Authority (KRA) unprecedented access to trade secrets, private data, and personal phone usage.
During public hearings, stakeholders vehemently opposed the elimination of tax rebates for companies involved in mass residential construction.
Critics argue that this change would undermine efforts to provide affordable housing, contrary to the government's stated objectives.
Additional grievances include granting KRA the authority to issue demand notices during ongoing disputes, limiting the carry-forward of bad debt claims, and imposing new tax obligations on sports sponsorships and ride-hailing platforms like Bolt and Uber.
The Kenya Property Developers Association cautioned that removing the 15% tax rebate for developers constructing over 100 housing units annually could deter investment, escalate property prices, and impede progress in affordable housing initiatives.
Aviation industry leaders raised concerns over proposed taxes on aircraft and parts, warning that such measures could cripple the sector due to increased operational costs.
In response to these concerns, the Finance and National Planning Committee, chaired by Molo MP Kuria Kimani, has initiated public consultations across the country.
The committee has already received substantial feedback, with over 1,000 online submissions and more than 200 stakeholders presenting their views.
"We urge Kenyans to continue engaging with us as we assess the impact of these proposals," emphasized Kimani, highlighting the committee's commitment to a transparent and inclusive process.
Stakeholders have also expressed apprehension over clauses infringing on data privacy rights, arguing that such provisions contradict existing laws and could undermine Kenya's status as a regional technology and financial hub.
Despite some provisions receiving cautious welcome, such as measures to enhance transparency in PAYE calculations, the overall sentiment remains one of apprehension and opposition among stakeholders.
