Mbadi Confirms 2025 Budget Has No New Taxes, Focuses on Spending Cuts
NAIROBI — Treasury Cabinet Secretary John Mbadi has confirmed that the 2025/2026 national budget introduces no new taxes and is designed to ease financial pressure on citizens while tightening control over government spending.
Speaking during a public address on Monday, Mbadi said the Finance Bill 2025 does not impose additional tax burdens. Instead, it focuses on cutting wastage, improving tax collection, and increasing efficiency in how public funds are managed.
“We have a modest Finance Bill 2025,” Mbadi said. “It is a Finance Bill with no tax increases and no high taxes. This is happening for the first time. We have not added any tax at all. Let nobody cheat you or lie to you; there is no tax increase.”
Mbadi explained that the government responded to growing public frustration over the rising cost of living by avoiding new taxes in the 2025 plan. “Kenyans complained about high taxation,” he said. “We were cautious as a government to ensure we didn’t introduce unreasonable taxes that would overburden Kenyans again.”
The Treasury’s strategy involves restructuring tax administration to reduce leakage and make revenue collection more effective. Mbadi emphasized that every collected shilling must deliver direct benefits to the public.
He also revealed that the Treasury has slashed spending in areas with a history of budget misuse and will continue to trim unnecessary allocations. “We are trying to manage the budget. If you allocate too much, it will be wasted,” Mbadi said.
The Finance Bill also prioritizes funding for critical sectors, with each program now required to have a clear and accountable budget. Mbadi warned against defending inflated allocations that have historically enabled theft.
“Please do not allow those who have benefited from the misuse of public resources to attack the government for reducing their budget,” he said.
He urged Kenyans to back ongoing reforms targeting loopholes that allow for corruption. “The problem with Kenyans is that sometimes we make noise about putting too much money into something because people are stealing that money,” he said. “However, when we start reducing the budget to reasonable amounts and putting roadblocks to theft, we again start to make noise.”
Mbadi’s statements mark a shift toward a leaner government spending model that emphasizes accountability, transparency, and direct service delivery over unchecked allocations.
