No new taxes on employment income, says Treasury CS John Mbadi
Business
By
David Njaaga
| Feb 06, 2025
Treasury Cabinet Secretary John Mbadi says Kenyans will not face new taxes on employment income in the upcoming Finance Bill.
Speaking during a public engagement at Jeevanjee Gardens on Monday, 3 February,="https://www.standardmedia.co.ke/business/business/article/2001509746/mbadi-proposes-more-taxes-to-finance-sh43tr-maiden-budget"> Mbadi noted that the government had reached its limit on taxation, particularly on employment income.<
“We cannot overtax Kenyans anymore,” he stated.
Mbadi also addressed the delayed implementation of the National Social Security Fund (NSSF) increase, explaining that the law to raise contributions by 76 per cent, passed years ago, is only being put into effect now.
“You may not see the value of saving for retirement, but as a personal finance advisor, I would tell you, you need to save money for your retirement,” he explained.
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He urged Kenyans to begin planning for retirement early, citing his situation as a reminder of the importance of saving.
“I have no more than six years left before retirement,” he added.
On VAT, Mbadi confirmed there would be no increase.
“We are not increasing VAT at all,” he affirmed. He added that the Finance Bill for this year would likely have no upward tax adjustments.
The Finance Bill 2025 is expected to be presented in Cabinet before 18 April 2025, ahead of its tabling in the National Assembly.
Finance Bills contain tax proposals which are used to fund the budget. However, under the Kenya Kwanza administration, Kenyans have lamented the effects of the proposals on their income.
In particular, Finance Bill 2024 had to be withdrawn after widespread protests from Gen Z across the country.
Mbadi also revealed his proposed pension amendment, which would allow individuals to access their full pension without having to surrender any portion to the government.
“When I get my pension, I take the whole of it without surrendering anything to the government,” he reiterated.