{"id":225387,"date":"2025-02-07T18:32:19","date_gmt":"2025-02-07T15:32:19","guid":{"rendered":"https:\/\/www.ghafla.co.ke\/ke\/?p=225387"},"modified":"2025-02-07T18:32:19","modified_gmt":"2025-02-07T15:32:19","slug":"no-new-taxes-in-2025-treasury-cs-john-mbadi-says-enough-is-enough","status":"publish","type":"post","link":"https:\/\/www.ghafla.co.ke\/ke\/no-new-taxes-in-2025-treasury-cs-john-mbadi-says-enough-is-enough\/","title":{"rendered":"No New Taxes in 2025? Treasury CS John Mbadi Says \u2018Enough Is Enough\u2019"},"content":{"rendered":"

In a rare moment of fiscal relief, Treasury Cabinet Secretary John Mbadi has given Kenyans something to breathe easy about: no new tax hikes in the upcoming Finance Bill 2025.<\/p>\n

Yes, you read that right – no adjustments to Value Added Tax (VAT), employment taxes, or other key levies.<\/p>\n

\"\"
CS Mbadi during a recent press briefing in Nairobi (Image: Files)<\/figcaption><\/figure>\n

Speaking candidly with the Bunge la Wananchi caucus in Nairobi on February 3, Mbadi made it clear – the government has hit its taxation ceiling.<\/p>\n

“We cannot overtax Kenyans anymore<\/em>,” he declared. “There\u2019s no more room for additional taxes, especially on employment income. Not under my watch.”<\/em><\/p>\n

This announcement comes as a small but notable relief for many Kenyans already grappling with multiple deductions – from the Social Health Insurance Fund to the Affordable Housing Levy and other statutory contributions that chip away at take-home pay.<\/p>\n

Speaking of the Affordable Housing Levy\u2026<\/strong><\/p>\n

Let\u2019s not forget that back in October 2023, the government secured court approval to enforce the 1.5% levy on gross salaries, with employers matching that amount – bringing the total deduction to 3%.<\/p>\n

So while Mbadi\u2019s declaration might ease fears of new taxes, the deductions already in place aren\u2019t going anywhere.<\/p>\n

Pension Funds Get a Break<\/strong><\/p>\n

On the bright side, Mbadi is also championing an amendment to the Pensions Fund Act, aiming to exempt pension savings from taxation.<\/p>\n

His reasoning? A mix of personal and public interest:<\/p>\n

“When I retire, I\u2019d like to receive my pension in full – without surrendering a chunk of it to taxes. And I believe every Kenyan deserves the same.”<\/em><\/p>\n

This move isn\u2019t just about lightening the tax load.<\/p>\n

It\u2019s also designed to encourage a savings culture and offer better protection for retirees.<\/p>\n

\"\"<\/p>\n

What This Means for You<\/strong><\/p>\n

While there\u2019s no promise of tax reductions, the fact that the government is pressing pause on new tax hikes is significant.<\/p>\n

It reflects growing recognition of the financial strain many Kenyans face.<\/p>\n

But here\u2019s the kicker: no new taxes doesn\u2019t mean no existing burdens.<\/p>\n

Deductions for health insurance, housing, and pensions will still apply. The real question is – will these measures be enough to ease the cost of living?<\/p>\n","protected":false},"excerpt":{"rendered":"

In a rare moment of fiscal relief, Treasury Cabinet Secretary John Mbadi has given Kenyans something to breathe easy about: no new tax hikes in the upcoming Finance Bill 2025. Yes, you read that right – no adjustments to Value Added Tax (VAT), employment taxes, or other key levies. Speaking candidly with the Bunge la […]<\/p>\n","protected":false},"author":6067,"featured_media":225388,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"template-parts\/template3.php","format":"standard","meta":{"footnotes":""},"categories":[310],"tags":[139515,139752,138443],"class_list":["post-225387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-affordable-housing-project-news","tag-cs-mbadi-news","tag-kenyan-tax-news"],"_links":{"self":[{"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/posts\/225387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/users\/6067"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/comments?post=225387"}],"version-history":[{"count":1,"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/posts\/225387\/revisions"}],"predecessor-version":[{"id":225391,"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/posts\/225387\/revisions\/225391"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/media\/225388"}],"wp:attachment":[{"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/media?parent=225387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/categories?post=225387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghafla.co.ke\/ke\/wp-json\/wp\/v2\/tags?post=225387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}