Kenya Avoids New Taxes in 2025 Budget After Deadly 2024 Protests

Kenya's government will not introduce new taxes or increase existing ones in the 2025/26 budget proposals, following last year's deadly youth-led protests that resulted in over 50 deaths and forced President William Ruto to withdraw previously approved tax hikes worth approximately $2.68 billion. Finance Minister John Mbadi emphasized that the focus of this year's finance bill is on improving tax administration, closing loopholes, and making tax collection more efficient rather than raising rates. The bill aims to raise an additional 25-30 billion shillings by enhancing enforcement measures, including a controversial proposal to allow tax authorities access to personal and business financial data to combat evasion, which has drawn criticism over privacy concerns. Mbadi defended this measure, arguing it targets wealthy individuals who currently avoid taxes due to legal protections. The total budget expenditure is set at about 4 trillion shillings ($30.97 billion) with a projected deficit of 4.5% of GDP, and the proposals are now before parliament ahead of the official budget presentation next month.