Molo MP Kuria Kimani, who also chairs the National Assembly’s Finance Committee, has warned that Kenyans could face additional tax measures in the 2025 Finance Bill should projected revenues and foreign aid fall short of the government’s financial needs.
Speaking during a Tuesday interview with NTV, Kimani noted that the country’s ambitious Ksh.4.3 trillion 2025/26 budget, adopted by the National Assembly last month, represents a significant increase from the current Ksh.3.95 trillion budget. Of this, Ksh.2.523 trillion is allocated for national government expenditure Ksh.200 billion more than in the 2024/25 financial year.
Kimani stated that his committee will assess, between now and June, whether the government can rely solely on revenue collections, appropriations, and donor aid to bridge the funding gap. “If that will not be sufficient to fund the budget, that is when there will be additional tax measures to raise more revenue,” he said.
Treasury Cabinet Secretary John Mbadi has projected a 5.3 percent economic growth in 2025, up from 4.6 percent in 2024, driven by key sectors such as agriculture, ICT, tourism, and manufacturing. However, Mbadi has also raised concerns over shrinking donor support. Notably, the U.S. recently halted all foreign assistance through USAID, while other traditional partners like the European Union are reportedly cutting back funding.
In late March, Mbadi emphasized the need for Kenya to “look inward” to generate its own resources, warning against overdependence on foreign aid. This comes as the government grapples with rising debt servicing costs tied to its ballooning Ksh.10 trillion external and domestic debt.
The prospect of fresh tax hikes is likely to stir public concern, especially following the nationwide, youth-led protests that forced President William Ruto’s administration to drop Ksh.346 billion worth of tax proposals from the 2024 Finance Bill.
As pressure mounts to fund the growing budget without triggering unrest, the Finance Committee faces the delicate task of balancing fiscal discipline with socio-political stability.
