President William Ruto has shocked many Kenyans with a bold move in the Finance Bill 2025 – no new taxes. Instead of putting more burden on citizens, the government plans to clean up its own house, stop wastage, and go after those who cheat the tax system.

This is a major shift from last year’s approach, which brought in unpopular taxes like the housing levy and VAT increases. The new message is simple: we must live within our means.

Spending Cuts and Fairness for Workers

The Cabinet has already agreed to serious spending cuts so that the budget deficit doesn’t go above 4.5% of the GDP. In other words, the government wants to spend less and work smarter.

Workers in the private sector will now get a raise in their untaxed per diem—from Sh2,000 to Sh10,000. This comes after public servants already got the same increase. Treasury says this is about fairness and treating everyone equally.

Also, from now on, employers must calculate all taxes, deductions, and reliefs when they pay salaries. This will make life easier for employees and improve how KRA collects taxes.

Good News for Creators and Tech Innovators

Digital content creators can breathe a sigh of relief. The 1.5% Digital Service Tax is gone. Instead, Kenya will follow international standards and make big tech companies without offices here pay their fair share.

Even better, if you own crypto assets, the tax drops from 3% to 1.5%. The idea is to make Kenya more attractive for digital finance and innovation.

Tax Cheats Beware

The Finance Bill 2025 also focuses on stopping fraud in the tax system. Some companies have been claiming billions in tax refunds but not lowering prices for customers. Treasury calls this the “biggest quiet scandal” and wants to end it.

To fix this, KRA will use better technology to trace suspicious claims. Treasury will also lose some powers that were often abused to approve shady refunds.

Fixing the Legal System

The bill will also change how tax disputes are handled. Right now, some big companies delay payment by dragging cases in court. New rules will set strict timelines to make sure tax cases are resolved quickly and fairly.

There will also be tougher penalties for people who don’t file taxes on time. And in a smart move to grow our aviation industry, aircraft parts will now be tax-free.

Politics and the People

Ruto’s decision not to add taxes is not just about money. It’s also about politics. Last year’s Finance Act caused protests and anger. Many Kenyans were feeling the pressure of high fuel prices and new deductions from their salaries.

Now, the President seems to be changing strategy. He wants to win back public trust by showing that the government can fix itself first before asking more from the people.

What Next?

The budget will be read in June. That’s when we’ll see if these promises become reality. For now, the message is clear: No new taxes. More discipline. Fairness for workers and creators. And a serious fight against corruption.

Kenyans are watching closely. The Finance Bill 2025 could be a turning point — or just another promise. Only time will tell.