Kenyan MPs Pass Finance Bill 2025, Send It to President Ruto for Approval
- The National Assembly Committee on Finance and National Planning presented its report of the Finance Bill 2025, urging MPs to adopt the proposals and recommended changes
- The lawmakers withdrew controversial clauses in the bill, which were recommended by the committee led by Molo MP Kimani Kuria
- Finance Bill 2025 now awaits President William Ruto's assent into law to raise funds for the KSh 4.29 trillion budget
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
Members of Parliament (MPs) have passed the proposed Finance Bill 2025, which will raise funds to support the financial year 2025/26 budget.
Source: Facebook
The MPs unanimously agreed to withdraw several controversial clauses in the bill, which Kenyans and industry stakeholders had opposed.
What's the next step for Finance Bill 2025?
Among the controversial clauses was clause 52, which sought to amend Section 59A(1B) of the Tax Procedures Act and allow the Kenya Revenue Authority (KRA) access to business and personal data.
The National Assembly Committee on Finance and National Planning, led by Molo MP Kimani Kuria, adopted the views from the public in its report, urging MPs to pass it with the recommended changes.
"All the members of the public that appeared before us said that the provision needs to be deleted... and we agreed because this particular provision goes against our constitutional right on privacy and also goes against other laws on data and privacy," said Kuria.
The bill will now proceed to the presidential assent stage, where President William Ruto has 14 days to approve or send it back to Parliament with further recommended amendments.
If it is referred back, the MPs have a role to either amend it or pass it again without amendments, and if the president fails to act on the bill within the next 14 days, then it is deemed to be passed.
How much will government raise from Finance Bill 2025?
The Finance Bill 2025 projected revenue collection is KSh 24 billion, aimed to finance the KSh 4.29 trillion budget.
The lawmakers slashed the revenue estimates from the initial KSh 30 billion proposed by the National Treasury.
However, the reduction in the Finance Bill 2025 revenue estimates raised the budget deficit for the financial year starting July 1, 2025, to KSh 997.5 billion, up from KSh 882 billion.
How will government raise funds for budget?
The Central Bank of Kenya (CBK) reopened the Treasury bond and Treasury bills auction in June 2025 to raise more funds for the budget.
CBK raised KSh 24 billion in June 2025 Treasury bills, which were oversubscribed by Kenyan investors.
The regulator also released the results of the reopened 15 and 30-year Treasury bond issues, raising over KSh 71 billion.
The bond raised KSh 71.6 billion above the targeted amount of KSh 50 billion from the domestic market for budgetary support.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
