Nairobi Senator Edwin Sifuna has credited Gen Z for pressuring the government to avoid introducing new taxes in the 2025 Finance Bill. Speaking on Thursday, Sifuna claimed the youth’s vocal resistance to last year’s tax proposals has made the government tread more carefully this time.
“The CS ( John Mbadi) is taking credit that this year’s Finance Bill has no new taxes, but that credit partly goes to the Gen Z. They would not dare bring new taxes after last year’s backlash,” said Sifuna.
While partially agreeing with the senator, Treasury Cabinet Secretary John Mbadi defended the government’s approach, saying the Bill avoids tax hikes that could harm taxpayers.
“It is true that we have made major changes in taxes that would disadvantage taxpayers,” said Mbadi.
Sifuna, however, noted that he has consistently opposed punitive taxation, adding that “more taxes do not necessarily lead to higher revenue.”
On the controversial housing levy, Mbadi who appeared before the senate to answer questions that were raised about his docket, revealed that the government is reviewing how to restructure the programme to make it more efficient and acceptable.
Additionally, the Treasury is exploring ways to ease the tax burden, with proposals to reduce Pay As You Earn (PAYE) and lower corporate tax from 30% to 27% in the new fiscal year.
The Finance Bill 2024/25 is currently under public scrutiny and is expected to go through several stages in Parliament before final approval.
