Shockwaves Across Kenya As Finance Bill 2025 Sparks Uproar: “A Tax Tsunami Is Coming”

A fierce storm is brewing across Kenya as the controversial Finance Bill 2025 ignites outrage from nearly every corner of society. With just weeks to go before potential implementation, Kenyans are sounding the alarm — warning that the sweeping tax proposals could devastate families, cripple industries, and shatter economic stability.

“This could be the most damaging budget in Kenya’s history,” warned a concerned stakeholder, as tensions rise ahead of the public hearings starting July 2.

MP Kuria Kimani Under Fire as Committee Pushes Public Hearings

Leading the charge is Molo MP Kuria Kimani, chair of the Finance and National Planning Committee, who has come under intense pressure as his team embarks on a whirlwind tour of 10 counties, collecting public opinions. Already, over 1,000 written memoranda and 200 oral submissions have flooded in, as citizens rally against what they call an economic ticking time bomb.

A QR code has been rolled out to ease submissions, but many Kenyans say “no app can fix a broken economy.”

Essential Goods to Get Hit with 16% VAT – “A Slap in the Face” to Struggling Families

One of the bill’s most explosive clauses? A plan to reclassify essential goods — including food — under the standard 16% VAT rate. Consumer groups say this single change could push millions further into poverty, at a time when inflation already haunts Kenyan households like a ghost.

“You’re taxing survival,” cried one activist during the Nairobi pre-hearing.

Industry insiders warn that the cost of unga, milk, and basic toiletries could skyrocket overnight, triggering a fresh wave of economic despair for low-income earners already living hand to mouth.

Privacy Nightmare? KRA to Access Trade Secrets and Personal Data

If higher living costs weren’t bad enough, another part of the Bill has set off alarm bells among legal experts and civil rights groups. A provision would grant the Kenya Revenue Authority (KRA) unrestricted access to confidential company data and personal information — something critics say is blatantly unconstitutional.

Tech firms and privacy watchdogs are calling it a “Big Brother overreach”, warning that it could drive investors away and paint Kenya as an unsafe place to do business.

Safaricom and American Tower Company Kenya Ltd are among those issuing sharp rebukes, fearing that the clause would sabotage trust in the country’s digital and financial systems.

Affordable Housing Dream in Jeopardy

In the real estate sector, shockwaves are being felt over the Bill’s proposal to scrap tax incentives for developers building affordable homes. This would effectively kill a government-backed initiative that gives tax breaks to firms constructing 100+ units annually.

“This move is a betrayal,” said Rose Kananu of the Kenya Property Developers Association. She warned that higher home prices would lock ordinary Kenyans out of affordable housing — the very population the program was meant to uplift.

Aviation Sector May Crash-Land Over New Levies

The skies aren’t safe either.

The Kenya Association of Air Operators, led by Mbuvi Ngunze, is pleading with MPs to halt new taxes on aircraft and components. The introduction of VAT, Railway Development Levy, and Import Declaration Fees could ground expansion plans and trigger higher ticket prices — a devastating blow for a country positioning itself as an aviation hub.

“We’re staring at higher costs, fewer flights, and frustrated passengers,” Ngunze cautioned.

Ride-Hailing, Tech Giants Sound Red Alert

Tech-driven businesses aren’t spared. A clause mandating real-time eTIMS invoicing for every transaction on ride-hailing platforms like Uber and Bolt has been branded “operational suicide.” Companies warn the logistical chaos would disrupt services and drive users back to informal transport options.

Meanwhile, telecom titans like Safaricom have rejected plans to limit tax loss carry-forward to five years, arguing that it punishes long-term infrastructure investors and could derail billions in capital projects.

Even local smartphone manufacturers have joined the resistance. East African Device Assembly Kenya Ltd is urging Parliament to scrap VAT on raw components, arguing it’s the only way to grow homegrown tech manufacturing.

“The Bill Will Wreck Confidence, Kill Jobs, and Punish the Poor” – A Growing Consensus

From airlines to app developers, real estate to food vendors — the message is the same: the Finance Bill 2025 is out of touch, overreaching, and potentially catastrophic.

As public hearings kick off in Nairobi, Kenyans are uniting across class and sector lines, demanding lawmakers either rewrite the bill — or scrap it entirely.

The clock is ticking, and so is the country’s patience.