6 Things MPs Rejected in Finance Bill 2025

On Thursday, June 19, 2025, the National Assembly passed the Finance Bill 2025 after a rigorous debate and public participation that saw some clauses thrown out.

The Finance Bill 2025 has focused on changes that widen the current tax base to meet the estimated revenue from taxes of Ksh3.385 trillion, made up of ordinary revenues of Ksh2.84 trillion and appropriations-in-aid.

The Bill carries amendments to key pieces of tax legislation, including the Income Tax Act, the Value Added Tax Act, the Excise Duty Act, the Tax Procedures Act, the Miscellaneous Fees and Levies Act, and the Stamp Duty Act.

Following a series of public participation fora, the Parliament decided to drop some of the proposed amendmends to the tax laws, in some places retaining the status quo.

Here are some amendments rejected by MPs after members of the public and the business community gave their views;

1.   KRA can’t access your M-Pesa or bank without court order

This means your personal financial privacy is guaranteed since no random peeping into your accounts.

2.   No new PAYE tax bands

This means your salary tax rates remain stable — no surprise increases.

3. Essentials still zero-rated

This means prices stay low for important items such as solar systems and locally manufactured items, supporting green energy and local manufacturing.

4. Corporate tax breaks for key sectors retained

This will see jobs in construction, manufacturing, and housing continue growing.

5. No extra tax on legal alcohol

This will prevents illegal brew problems and protects rural alcohol producers.

6. Digital companies must pay tax

This means no free ride for small foreign digital firms.

Read: Finance Bill 2025: How Kenyans Will Benefit From New Law

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