Kenyans should be more open to paying additional taxes to help the country raise revenue and reduce dependence on debt, according to Treasury Principal Secretary Dr. Chris Kiptoo.
Speaking on Fixing the Nation about the national budget, Kiptoo defended the government’s growing spending needs.
The PS explained that although the Treasury had received close to a trillion shillings in additional funding requests, it had not factored them into the budget.
“There is an increase in expenditure coming in, and we have not factored in almost a trillion of requests that need funding,” he said.
Further, he explained that there were concerns that Kenyans are already feeling overburdened by taxes.
“But we could not because we are sensitive that Kenyans don’t want to pay more tax.
“If there is a rational reason to bring in a policy or a tax measure that will help raise revenue for this country, Kenyans should welcome that. We have to balance; do we take more debt?” he questioned.
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Why Kenyans May Expect a Supplementary Budget
His sentiments come as concerns grow over the 2025/2026 national budget and mounting pressure over rising debt levels and a narrowing fiscal space.
Between July 2023 and June 2024, Kenya spent Ksh840.73 billion on public debt servicing.
The PS notes that although the Treasury is not planning for a supplementary budget at the moment, changing circumstances may force one, as has happened in previous years.
“We always go to Parliament without the intention of doing a supplementary budget. But it is a response to some changing circumstances that you have to deal with,” he explained.
He, however, explained that the government remains committed to implementing the current budget proposals without further amendments.
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No New Taxes in Finance Bill 2025
The Finance Bill 2025 proposes increasing the tax-free per diem allowance for employees from Ksh2,000 to Ksh10,000, among other key proposals.
This adjustment is expected to provide relief to employees who travel frequently for work by expanding the tax-exempt limit for daily expenses.
Additionally, the Executive has promised to table a budget that introduces no new taxes, in a move aimed at easing the burden of the high cost of living and restoring public trust.
To address the budget deficit, which the government aims to maintain below 4.5% of GDP, plans are underway to implement spending cuts instead of introducing new taxes.
On February 14, 2025, Kenya’s gross domestic debt surpassed the Ksh6 trillion mark for the first time in history.
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