National Assembly passes bills to boost state firms, tax clarity and investment
By Kenneth Mwenda, November 18, 2025The National Assembly has passed three bills with amendments: the Government Owned Enterprises Bill, the Provisional Collection of Taxes and Duties (Repeal) Bill, and the Capital Markets (Amendment) Bill.
The announcement, made on their X account on Tuesday, November 18, 2025, signals a move to improve governance, investment, and taxation frameworks in Kenya. The bills are now expected to proceed for presidential assent.
The Government Owned Enterprises Bill (National Assembly Bill No. 40 of 2025) focuses on establishing clear rules for state-owned enterprises. The bill provides a framework for the creation, control, governance, performance, and ownership of Government Owned Enterprises (GOEs). It also defines the public service obligations that these enterprises must fulfil.
The Bill seeks to ensure that GOEs operate efficiently, transparently, and in line with national development priorities. By establishing governance guidelines, the law aims to strengthen accountability in the management of public resources.
The second bill, the Provisional Collection of Taxes and Duties (Repeal) Bill (National Assembly Bill No. 18 of 2025), repeals the Provisional Collection of Taxes and Duties Act (Cap. 415). The repeal follows a High Court ruling in Petition No. 253 of 2018, which declared the Act unconstitutional.
By repealing the Act, the government aims to align tax collection mechanisms with the Constitution. The repeal removes legal uncertainty for taxpayers and ensures that tax policies comply with court decisions.
The third, the Capital Markets (Amendment) Bill (National Assembly Bill No. 30 of 2025), introduces changes to section 29 of the Capital Markets Act (Cap. 485A). The amendments focus on shareholding limits within different licence categories of regulated institutions.
Governance and investment
Overall, the three Bills reflect the National Assembly’s effort to improve governance, legal compliance, and investment conditions in the country. They cover key areas affecting public enterprises, tax administration, and capital markets, which are central to Kenya’s economic growth and regulatory framework.
“The amendments seek to enhance ease of doing business by removing shareholding limits to attract more investment in regulated institutions. Without such limits, larger investors may be more willing to invest significant capital, leading to increased liquidity and expansion opportunities for the institution,” the National Assembly stated.
Once the bills receive presidential assent, they will become law, enabling implementation of the new provisions.