Implement the National Tax Policy to solve Kenya's tax problems

Treasury CS John Mbadi during the 2025 Budget reading at Parliament Buildings, Nairobi, on June 12, 2025. [Elvis Ogina, Standard]

Treasury Cabinet Secretary John Mbadi aims to manage the growing public debt to more sustainable levels. Yet, annual anxiety from the finance bills, a complex and ever-changing tax system stands as a significant roadblock. In the last two years, the government has tabled tax proposals that have confused, surprised, and even annoyed many, leading to lawsuits, showdowns at public participation events and unprecedent riots and protests.

Experts argue that these complexities have dimmed hopes of economic recovery, let alone takeoff. For the economy to thrive, the tax system ought to be simple. Just recently, the World Bank warned Kenya that its unpredictable tax regime risked undermining foreign direct investments. It argued that frequent changes in regulation and policy shifts discourage investment and stifle growth.