No more taxes for salaried Kenyans, Treasury CS Mbadi assures on Finance Bill 2025
He says id the government does not plan to make any adjustments on VAT, employment tax, or any other taxation avenues

The government will not increase taxes or introduce new ones in the Finance Bill 2025.
Speaking during an engagement with Bunge La Mwananchi at the Jevanjee gardens in Nairobi, National Treasury Cabinet Secretary John Mbadi said the government does not plan to make any adjustments on Value Added Tax, employment tax, or any other taxation avenues.
The CS said the decision is meant to protect Kenyans who are already overtaxed adding that the government has already got to its limit.
“The 2025/26 finance bill will not have any addition of rates. The government cannot tax Kenyans anymore. If you look at taxes on employment income, we have reached the maximum limit. Under my watch, you’ll not see any more taxes on employment income,” He stated.
The CS has further defended the Pension Funds Act which will see arise in the amount remitted to NSSF adding that the Act which will soon be implemented shields Kenyans from being taxed on their pension funds.
On effective public participation on the Finance Bill, Mbadi said his engagement beginning today going forward is a representation of what to expect during the public participation for Finance bill.
The former Suba MP promised that public participation will not be for the elites only at Kenyatta International Convention Centre (KICC) and other set venues, saying they will informal engagements where Kenyans in formal and informal employment can give their views and participate in the formulation of the Bill.
“Public participation has always been more formal, more academic, and too professionaliSed yet there are many people out there who have different views but do not get an opportunity to engage in the forums,” he stated.
“In the coming budget, we will try as much as possible to engage every Kenyan in a more informal manner like we have started today. This is to ensure we do not stick to the elites only at KICC where they are the only ones who come to give their views,” he added.
Currently, an employed Kenyan pays 1.5 per cent as housing levy, 2.75 per cent deducted towards universal health cover- Social Health Authority (SHA), Ksh 2,160- Ksh 50,000 for National Social Security Fund (NSSF) and pay as you earn (PAYE) of between 30 and 35 per cent.
According to the Treasury CS, the Tax Procedures (Amendment) Act 2024 brought a significant relief by raising tax-exempt benefits and providing tax-deductible contributions, which in turn reduce taxable income.
The Finance Bill 2024 collapsed after Gen Zs revolted and stormed Parliament to protest the passing of punitive taxes despite demands that they be dropped.
President William Ruto declined to asset to it and instead ordered austerity measures across government.
Former Deputy President Rigathi Gachagua has since become one of the leading critics of the government’s taxation policy.
“We want to rescue the payslip because the payslip iliguzwa na iko shida mingi sana. (We want) to restore the dignity of the payslip so that the people are able to do their things,” Gachagua said after attending a church service in Murang’a on Sunday.