Kenya's Finance Bill 2025: Higher Tax Threshold Sparks Debate

Kenya's Finance Bill 2025: Increased Tax Threshold Aims for Equity. Nairobi, Kenya – The Kenyan government's Finance Bill 2025 has sparked debate, particularly regarding its impact on income tax. Dr. Chris Kiptoo, Principal Secretary of the National Treasury, recently addressed concerns in an interview. "We have an issue of lack of fairness in terms of treatment of employees in the private and public sector," Kiptoo stated. The Bill raises the income tax threshold from 2,000 to 10,000 shillings. This change is intended to create parity between public and private sector employees, acknowledging the rising cost of living. Kiptoo explained that revisions to minimum thresholds for tax-free allowances, such as travel and entertainment allowances, are also part of this effort. The increased threshold, he added, is a step towards ensuring that all employees receive fair treatment. The Finance Bill 2025 is a significant step towards economic resilience, aligning revenue with long-term fiscal goals, according to government statements.