National Treasury Principal Secretary Chris Kiptoo has said Kenyans should not dismiss proposed tax measures if they are reasonable and aimed at addressing the country’s fiscal needs.

Speaking during an interview with a local TV station on Tuesday, May 13, 2025, Kiptoo addressed concerns that the government might reintroduce additional tax measures through other legislative channels, similar to what happened after the rejection of the Finance Bill 2024.

“It’s not everything that was brought back through the back door,” Kiptoo said, citing the example of the Significant Economic Presence Tax, which replaced the Digital Service Tax. 

 He explained that the new tax specifically targets non-resident companies operating in Kenya’s digital space and does not affect most local consumers.

“This approach brings more equity. We are simply asking companies that provide services in our jurisdiction to contribute their fair share,” he said.

Tight space

The PS emphasized that the Treasury intends to avoid supplementary budgets unless necessitated by unforeseen changes. 

“Our expectation is to go to Parliament without the intention of even doing a supplementary,” he said, noting that the Treasury had received requests amounting to nearly a trillion shillings that could not be accommodated due to budgetary constraints.

The interview comes in the wake of Cabinet approval of the Finance Bill 2025 during a sitting chaired by President William Ruto on Tuesday, April 29. 

Cabinet Secretaries were directed to work closely with the National Treasury to identify and implement necessary adjustments within their ministries and State departments. 

Public participation

Meanwhile, the National Assembly has invited public participation on the Finance Bill 2025, which seeks amendments to several tax laws. Written memoranda must be submitted by May 27, 2025, as part of the public input process before the bill is debated and enacted.

 Kiptoo said the government is already addressing concerns about wastage in public spending. Among the measures proposed is a 50% cut in foreign travel, except for essential ministries like Foreign Affairs, Trade, and East African Community Affairs, whose roles inherently involve international engagement.

Responsible taxation

“There’s too much pressure on spending. Everyone wants more, but we have to balance that with raising revenue,” Kiptoo said. “If there’s a rationale behind a tax policy, Kenyans should welcome it.”

He further argued that many Kenyans are not opposed to taxation itself, but want to see how their taxes translate into meaningful development.

“We must raise money. The question is,do we tax more, or do we borrow more? Debt service is becoming a serious problem,” he added.