President William Ruto has signed the Finance Bill 2025 into law, marking a pivotal moment in Kenya’s fiscal calendar—but doing so under the weight of renewed public unrest and simmering generational anger.

The signing ceremony took place Thursday at State House, Nairobi, in a subdued event attended by senior figures from both the Majority and Minority in Parliament. With little fanfare, the President also signed into law the 2025 Appropriations and Supplementary Appropriations Bills, unlocking access to billions in state spending.

“We now have the legal instruments necessary to steer this country forward,” Ruto said briefly during the ceremony. “This budget reflects our continued commitment to responsible economic management and inclusive growth.”

A Shadow of Protest

The President’s pen hit paper just days after Gen Z-led protests once again spilled onto the streets of Nairobi. Though largely peaceful, the demonstrations echoed last year’s mass action that forced the government to withdraw the controversial Finance Bill 2024.

This time, the message from the streets was clear: distrust remains.

“We’re tired of being taxed without transparency,” said 24-year-old protester Sheila Njeri, who marched with fellow demonstrators through the Central Business District earlier this week. “It’s like they’re not listening—again.”

While the new Bill attempts to address some of the concerns raised in 2024, tensions between Kenya’s youthful population and its political leadership remain strained.

What’s in the Finance Bill 2025?

The Bill includes sweeping amendments across several key tax laws, including the Income Tax Act, VAT Act, Excise Duty Act, and others. Here are the major takeaways:

• Pension Tax Reform: Subsections (4) to (9A) of Section 8 of the Income Tax Act have been repealed. This effectively ends tax deductions on gratuity payouts upon retirement, a move expected to benefit retirees.

• Mortgage Relief Made Easier: Kenyans will now qualify for mortgage interest tax relief even if they build homes through SACCOs or personal loans—no longer limited to formal home purchases.

• No New PAYE Bands: The much-feared expansion of Pay As You Earn (PAYE) tax brackets was dropped after parliamentary debate.

• Taxman’s Reach Curtailed: An earlier proposal that would have given the Kenya Revenue Authority broader access to personal data was rejected. As it stands, your privacy is safer—for now.

• Zero-Rated Essentials: The Bill zero-rates key commodities, though the government has yet to release a full list. Expectations include basic foodstuffs and hygiene products.

• Corporate Tax Breaks: Select sectors will receive targeted corporate reliefs to spur investment and job creation, although the details remain vague.

Appropriations: Big Numbers, Bigger Promises

Also signed into law was the Appropriations Bill 2025, which gives the government the authority to spend public money for the financial year ending June 30, 2026.

The numbers are staggering:

• Ksh1.88 trillion will be drawn from the Consolidated Fund for state operations.

• An additional Ksh671.99 billion will be accessed as Appropriation-in-Aid (AIA)—revenues collected internally by Ministries and Agencies.

• Ksh1.8 trillion is allocated to recurrent expenditure—covering salaries, debt payments, and routine services.

• Ksh744.5 billion goes toward development spending, including infrastructure and social programmes.

Treasury officials insist the allocations are geared towards productivity and equity.

“This budget is about more than numbers,” said a senior Treasury official who requested anonymity due to the sensitivity of the moment. “It’s about trust. And rebuilding it.”

Looking Ahead

Despite efforts to soften its edges, the Finance Bill 2025 may not escape scrutiny for long. Protest organisers have already signalled they are not done.

“We’ll be back in the streets,” said activist Eric Mwangi, 27. “We’re watching how this money is spent.”

With economic pressures mounting and a restless generation demanding more transparency and inclusion, the government may have won the paperwork battle—but not the public’s full confidence.

The real test lies ahead.