Every year, Kenya’s Finance Bill outlines how the government plans to raise and spend money. It’s more than just a document, it shapes the daily lives of millions of people. The 2025 Finance Bill is now under public scrutiny because several of its proposals could have a significant impact on ordinary Kenyans, especially those already grappling with a high cost of living.
One of the proposals is the Eco Levy. It’s meant to support climate-friendly practices by discouraging the use of certain products. However, this tax would apply to items such as sanitary pads, diapers, and electronic appliances. These are not luxury goods for most households. They're essential for health, education, parenting, and daily survival. The result? Higher prices for the tools and products people rely on to live and work.
Another area raising concern is personal data privacy. The bill proposes to give the Kenya Revenue Authority (KRA) access to individuals’ bank and mobile money transactions without needing a court order. While this move is said to enhance tax compliance, it raises valid concerns about data protection and whether such access could be misused or misunderstood, particularly for informal traders, chamas, and side hustlers.
The proposed 2.5% annual Motor Vehicle Tax, with a minimum of KSh 5,000, could also place extra pressure on car owners. This applies even if the vehicle isn’t used regularly. Coupled with the high cost of fuel and vehicle maintenance, many see this as yet another financial hurdle.
Then there’s the removal of tax exemptions on basic food items such as milk, bread, and cooking oil. These are part of everyday meals for most families. If these items become more expensive, the effect will ripple through to nutrition, household budgets, and overall wellbeing.
For Kenyans who earn a living through digital platforms including online sellers, content creators, and freelancers the proposed 5% withholding tax on digital income adds another layer of concern. Digital work has become a lifeline for many young people, but the cost of internet, gadgets, and platform fees is already high. This tax could make digital work less sustainable, especially for small earners.
The bill also proposes to raise the Fuel Levy from KSh 18 to KSh 25 per litre. This change will likely lead to increased transport costs, higher food prices, and a general rise in the cost of goods and services across the country.
All these are measures are meant to increase revenue, reduce borrowing, and build a more self-reliant economy. And while raising taxes is not new, the challenge lies in how and who gets taxed. In many of these proposals, the biggest impact seems to fall on low- and middle-income Kenyans the same people who already feel the weight of previous economic policies.
These proposals may be aimed at growing the economy, but they also carry a weight that will be felt deeply by everyday Kenyans.
