Treasury Cabinet Secretary John Mbadi has revealed that advanced discussions are underway to potentially abolish the Finance Bill starting next year. The move, he said, aims to create a tax environment where Kenyans contribute fairly without facing the pressures tied to an annual Finance Bill.
“We’re considering doing away with the Finance Bill altogether next year. Our goal is to ensure every Kenyan pays their fair share of tax, without frequent legislative changes,” Mbadi stated, adding that measures are in place to streamline tax compliance.
The Finance Bills of 2023 and 2024 faced widespread opposition, with Members of Parliament and the executive largely disregarding public concerns. The 2023 Bill, initially enacted, was ruled unconstitutional by both the High Court and Court of Appeal, though the Supreme Court recently upheld it. President William Ruto, however, was compelled to withdraw the 2024 Bill amid intense public protests.
Without the Finance Bill, Mbadi noted, the government plans to adopt a zero-based budget approach to curb the misuse of public resources.
There’s a perception that tax revenue is being mismanaged. We’re implementing a zero-based budget, which will help reduce human interference in the procurement process,” he said on Wednesday night.
Earlier this week, Mbadi met Safaricom CEO Peter Ndegwa to discuss ongoing projects and explore new avenues for collaboration. Praising Safaricom’s dedication to innovation and economic development, Mbadi emphasized the government’s commitment to partnering with companies that drive job creation and economic resilience.
“By collaborating with forward-thinking companies like Safaricom, we can advance technology, bolster economic resilience, and enhance prosperity for our citizens,” he added.
