No new taxes as govt targets wider tax base, Mbadi says

NAIROBI, Kenya, Mar 26 – The government will not introduce new taxes, with National Treasury Cabinet Secretary John Mbadi saying current rates will remain unchanged.

Appearing before the National Assembly’s Budget and Appropriations Committee, Mbadi said the economic situation facing Kenyans has not significantly changed to warrant new tax measures.

“I want to state that we are not looking at possibility of increasing tax rates because again there is no difference between this year and last year. Kenyans are the same. The rates are the same,” he said.

Instead, the Treasury is focusing on expanding the tax base through reforms at the Kenya Revenue Authority (KRA), targeting improved compliance and efficiency in revenue collection.

“We are looking at possibility of expanding the base… that is why we are putting pressure on the Kenya Revenue Authority and some reforms will have to take place there,” Mbadi added.

He noted that changes will be required at KRA to align revenue collection with increasing digitisation of the economy.

“We have communicated as much that some changes must be seen in terms of revenue collection… taxpayers have really gone digital. So we have to follow them and that has to be deliberate,” he said.

The remarks come amid continued public resistance to higher taxes under President William Ruto’s administration, following the withdrawal of the Finance Bill 2024 after nationwide protests.

Mbadi’s stance signals a shift towards compliance-driven revenue mobilisation rather than increasing the tax burden on households and businesses.