Kenyans now have their say on a tax plan that could touch nearly every corner of their daily lives. Public hearings on the proposed Finance Bill, 2025, began today in Busia and Migori counties, after a week of submissions in Nairobi.
From higher taxes on alcohol to levies on imported gas cylinders and software use, the bill’s proposals are sparking strong opinions—and concern.
“This is not just a formality,” said Benjamin Langat, Vice Chair of the National Assembly’s Finance and National Planning Committee. “What people say here will shape what we finally present to Parliament.”
Tomorrow, the committee will head to Trans Nzoia and Nandi to continue collecting views.
Langat urged the public to look at the Finance Bill alongside the budget, not in isolation.
“When you ask for more teachers or nurses, the money must come from somewhere,” he said. “The Finance Bill is how we raise those funds.”
But for many, some proposals are hard to accept.
The Kenya Association of Manufacturers (KAM) is pushing back on a change that redefines “royalty” under income tax law. The proposed change includes payments for software through distributors, something KAM says breaks with international standards.
“This deviates from the OECD’s globally accepted definition,” said Tobias Alando, KAM’s CEO. “Paying for software you use doesn’t count as a royalty in that framework.”
They also raised alarm over a 35 percent excise duty on imported gas cylinders, calling for industrial and medical cylinders to be spared.
“These are vital to health care and industry, and they’re not made locally or even regionally,” KAM argued in its submission.
Public health groups are also weighing in.
The International Institute for Legislative Affairs (IILA) said Kenya should hike taxes on tobacco, alcohol, and sugary drinks—known drivers of non-communicable diseases (NCDs).
“Tobacco kills over 8,000 Kenyans each year,” said Celine Awuor, CEO of the IILA. “Yet products like nicotine pouches and e-cigarettes are still taxed too lightly, even though they’re aggressively marketed to young people.”
The institute wants at least a 10 percent increase on sugary drink taxes and an increase in beer tax from Sh22.50 to Sh33 per centilitre of pure alcohol.
“This would discourage youth drinking and boost revenue,” they said.
Meanwhile, the Kenya Youth Climate Advisory Council (KYCAC) is challenging a proposed 25 percent excise duty on imported plastic films.
Young entrepreneurs working on sustainable packaging fear this could kill their businesses.
“We’ve heard from youth-led startups in places like Mombasa,” said the council in its statement. “This tax could price eco-friendly products out of the market.”
They’ve asked the committee to cut the tax to 5 percent or Sh50 per kilogram for biodegradable or compostable plastic films used by youth-owned green businesses.
As the hearings move from county to county, the Finance Committee is expected to collect hundreds more submissions.
For now, Langat says the committee is listening—and will continue to do so.
“Our doors are open. Let’s hear what Kenyans want, because in the end, this is their Bill too.”
The Finance Bill, 2025, once passed, will set the stage for how the government funds services—from education and healthcare to infrastructure and economic growth.
But for it to succeed, it must first pass the test of public trust.
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