Ruto Signs Finance Bill 2025 Amid Protests, Grants Ksh1.88 Trillion Spending Power
President William Ruto has signed the controversial Finance Bill 2025 into law, despite fierce opposition and countrywide protests led by Gen Z.
The bill, passed recently by the National Assembly, was assented to on Thursday at State House, Nairobi. Present were parliamentary leaders from both the Majority and Minority sides.
This comes as the country still heals from the effects of last year’s unrest over the 2024 Finance Bill, which was dropped due to public uproar. But unlike then, Ruto stood firm this time.
“We are committed to a fiscal framework that ensures Kenya’s financial independence,”
said President Ruto during the signing.
The Finance Bill 2025 is expected to amend several tax laws including the Income Tax Act, Value Added Tax (VAT) Act, Excise Duty Act, Stamp Duty Act, and the Tax Procedures Act
“The new tax reliefs will offer Kenyans more flexibility,”
stated Treasury CS Njuguna Ndung’u.
“Even if you build a house through SACCO or personal loans, you will still get tax relief.”
Among key wins for citizens is the repeal of subsections (4) to (9A) of Section 8 of the Income Tax Act. This means no tax deductions on gratuity after retirement. Additionally, the proposal to introduce new PAYE bands was dropped.
“We heard Kenyans,”
said Majority Leader Kimani Ichung’wah.
“That’s why MPs rejected the intrusive data-access clause and new PAYE bands.”
The bill also introduces corporate tax breaks and zero-rated tax reforms on essential commodities. In a surprising twist, even MPs from the Minority side attended the signing.
“We may have disagreed, but national interest comes first,”
added Minority Leader Opiyo Wandayi.
Alongside the Finance Bill, Ruto also signed the Appropriations Bill 2025 and Supplementary Estimates, granting the National Treasury the power to withdraw Ksh1.88 trillion from the Consolidated Fund.
This amount will fund government operations for the year ending June 30, 2026. It includes Ksh1.8 trillion for recurrent expenditure and Ksh744.5 billion for development projects.
“MDAs can now utilise their internally collected Ksh671.99 billion through Appropriation-in-Aid,”
clarified Budget Controller Margaret Nyakang’o.
Despite efforts to ease the burden, many Kenyans remain skeptical. The streets echoed anger just days ago, with youth demanding more accountability and transparency.
“You cannot ignore the voice of the people,”
one protester shouted during a rally outside Parliament.
“This is not the Kenya we voted for!”
The government maintains that the new laws will improve the business environment, create jobs, and stabilize the economy. However, the true test lies in implementation — and in whether Kenyans feel the impact.
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Ruto Signs Finance Bill 2025 Amid Protests, Grants Ksh1.88 Trillion Spending Power
