Kenya’s President Ruto Signs Finance Bill 2025 Into Law Amid Rising Public Dissent

President William Ruto has signed into law the controversial Finance Bill 2025, alongside the Appropriations and Supplementary Bills, in a move that comes amid growing nationwide dissent and a reawakening of youth-led protests. 

The signing ceremony, held on Thursday at State House in Nairobi, marked the official enactment of a raft of fiscal and taxation reforms expected to reshape Kenya’s economic landscape over the coming year. Senior leaders from both sides of Parliament were present, underlining the political establishment’s broad support for the legislation. 

But outside the gates of power, dissenting voices are growing louder. 

In recent days, parts of Nairobi and other towns have been gripped by Gen Z-led demonstrations, echoing last year’s mass protests that forced President Ruto to withdraw the 2024 Finance Bill. This year’s renewed demonstrations, labelled as commemorative but increasingly political, signal a deepening public frustration over what many see as tone-deaf governance in the face of economic hardship. 

The Finance Bill 2025 introduces sweeping changes to Kenya’s tax regime, including amendments to six major statutes such as the Income Tax Act, VAT Act, and Excise Duty Act. One of the most notable provisions is the repeal of subsections related to the taxation of pensions and retirement benefits, effectively removing tax deductions on gratuity payments for retirees. 

In what the government hails as a pro-people measure, the bill also expands access to mortgage tax relief. Kenyans will now be eligible for relief whether they build homes through SACCOs or personal loans, a shift from the earlier requirement to purchase a house directly. 

Other highlights include: 

No new PAYE (Pay-As-You-Earn) tax bands introduced 

Enhanced protections for data privacy by limiting KRA’s access to personal information 

Zero-rated tax reforms on essential goods 

Corporate tax incentives for selected key sectors 

Yet despite these reforms, critics argue the bill does little to address systemic inequality or rising living costs, with some activists calling it a “band-aid on a bullet wound.” 

Budgetary Implications and Spending Priorities 

Alongside the Finance Bill, President Ruto also assented to the Appropriations Bill 2025, effectively unlocking Ksh1.88 trillion from the Consolidated Fund for government operations. An additional Ksh671.99 billion will be available to Ministries, Departments, and Agencies as internally generated revenue, known as Appropriation-in-Aid. 

According to the approved Estimates of Revenue and Expenditure for 2025/2026: 

Ksh1.8 trillion is allocated for recurrent spending 

Ksh744.5 billion will go toward development projects 

The administration insists the budget reflects its commitment to service delivery, job creation, and long-term economic resilience. However, civil society groups have questioned the sustainability of such large expenditures in a country grappling with rising debt and fiscal pressure. 

The timing of the bill’s signing has not gone unnoticed. Activists accuse the government of deliberately rushing the process while protests dominated headlines. Despite assurances from State House that public input was considered, critics claim that the legislation lacks the transparency and inclusivity demanded by ordinary citizens. 

“What we are witnessing is not just a protest against a finance bill, it’s a rejection of a governance model that sidelines its youth,” said a protester in Nairobi’s Central Business District. 

As Kenya inches closer to the 2027 general election, analysts say the Finance Bill saga could serve as an inflection point for Ruto’s presidency, a litmus test for his promise to lead a government that listens to the people.