The proposed tax measures in the Finance Act, 2025, are pitting the government’s revenue needs against citizens’ growing economic frustrations.
Despite emerging as a ‘no new taxes budget’, the implications of some of the measures will still come to the taxpayer.
But for ordinary Kenyans already grappling with soaring living costs, these changes threaten to deepen financial strain.
The act, for instance, offers tax reliefs for workers whose jobs involve a lot of travelling. However, whether employees will now look to travel to benefit from these perks remains to be seen.
Critics argue that the proposals disproportionately burden low- and middle-income earners while leaving loopholes for wealthy elites and multinationals.
The
government insists these measures will broaden the tax base and reduce reliance
on borrowing, but trust in fiscal accountability remains shaky.
Corruption scandals and wasteful spending have marred past promises of efficient revenue utilisation.
The state must demonstrate tangible improvements in public service delivery—better roads, healthcare and job creation—to justify the sacrifice.
Without this social contract, the backlash could escalate into wider discontent.
Kenya’s tax policy must balance fiscal survival with economic empathy—or risk pushing its people to the brink.
