Draft Finance Bill, 2025 and budget estimates tabled in Parliament

The National Assembly has officially received the Finance Bill 2025 and the proposed budget estimates for the 2025/26 financial year, setting the stage for public engagement and parliamentary scrutiny of the government’s tax and spending plans.

During a House session on Wednesday, Speaker of the National Assembly Moses Wetang’ula confirmed the submission and outlined the next steps in the review process. He told members that the Finance Bill had already been approved by the cabinet and would now proceed to the Departmental Committee on Finance and Planning.

“I also wish to inform the House that I have received the draft Finance Bill 2025 from the Cabinet, which relates to the revenue-raising measures for the budget submitted,” Wetang’ula said.

“It will be committed to the Departmental Committee on Finance and Planning for consideration and public participation upon publication and first reading,” he added.

The Finance Bill, Wetang’ula noted, carries several measures designed to support the government’s drive to raise revenue for the upcoming financial year. He also confirmed that the public would have the opportunity to share their views once the Bill has been published and read for the first time in Parliament.

The move to introduce the Bill follows cabinet approval a day earlier. According to a cabinet statement shared with newsrooms on Tuesday, April 29, the proposals aim to tighten the country’s fiscal controls and promote tax reform.

The cabinet described the Finance Bill 2025 as one that “focuses primarily on closing loopholes and enhancing efficiency, including addressing loopholes related to tax expenditures that have historically been exploited to siphon funds from public coffers, such as through inflated tax refund claims.”

Among the highlights of the document is a proposal to allow employers to automatically apply all Pay-As-You-Earn (PAYE) reliefs.

Alongside the Bill, the budget estimates for the 2025/26 financial year have also been submitted to Parliament. The estimates, once approved by the House, will inform the Annual Appropriation Act.

Wetang’ula gave a detailed explanation of how the National Assembly will handle the estimates. He said the Constitution and the Public Finance Management Act 2012 guide the review process, which involves wide consultation.

“Honourable members, I have a short communication guidance on the consideration of budget estimates for financial year 2025/26. Article 221 of the Constitution, as read together with section 39 with the Public Management Act 2012, requires the National Assembly to consider the estimates of revenue and expenditure of the National Government, Parliament, and the Judiciary for each financial year. These estimates, once approved by the National Assembly form the basis for the annual Appropriation Act,” he stated.

The budget estimates have now been referred to the relevant departmental committees, as well as the Budget and Appropriations Committee, for further analysis and recommendations.

“Honourable members, as you may be aware the estimates have since been submitted and tabled before the National Assembly as required by the law. Consequently and pursuant to the provisions of standing orders 235, the estimates now stand submitted to respective departmental committees and the Budget and Appropriations Committee for consideration,” he explained.

Wetang’ula emphasised the need for active participation of all involved, including government ministries and the public.

“The departmental committees are required to engage with the relevant stakeholders to ensure the participation of all players in the process. It should be noted that the Budget and Appropriation Committee is required to discuss and review the budget estimates make recommendations to the House taking into account the recommendations from the departmental committees, the views of Cabinet Secretary of the National Treasury and the General Public,” he further informed the House.

The transmission of the Finance Bill and budget estimates marks the beginning of a critical process in shaping Kenya’s tax policies and public spending priorities for the year ahead.