Tag: National Treasury

Kenyans Invited to Weigh in on Finance Bill 2025 Via WhatsApp

In a bold move to modernize civic engagement, the Kenyan government is turning to WhatsApp to involve citizens in shaping the Finance Bill 2025.

Molo MP Kimani Kuria, who also chairs the National Assembly Finance Committee, announced this shift during an NTV interview on April 8.

With more Kenyans online than ever before, the government aims to make it easier for people to share feedback—especially those too busy to attend physical meetings.

This tech-driven approach reflects a broader push to bridge the gap between policymakers and citizens, ensuring more voices shape the nation’s financial future.

Finance Committee Chair Kimani Kuria announced that WhatsApp numbers will be shared after the bill is tabled to enable public feedback. [Photo: X/Kimani Kuria]

How WhatsApp Will Drive Public Participation in Finance Bill 2025

Kenyans will soon share their views on the Finance Bill 2025 through WhatsApp, according to Molo MP Kimani Kuria. This initiative comes as the government seeks to expand digital participation in the budget-making process.

Kuria explained that once the bill is tabled in Parliament and enters the public participation stage, official WhatsApp numbers will be released. These will give citizens a quick and direct way to provide their opinions.

“This year, we understand that many people have demanding jobs and can’t always make time to attend public meetings,” said Kuria. “So, we’re introducing easier, modern ways to communicate with us.”

While WhatsApp offers a new channel, Kuria urged the public not to ignore traditional platforms. Emails, letters, and physical forums will still be open for feedback. “It’s not about replacing existing methods,” he noted. “It’s about expanding access.”

The Finance Bill 2025 is expected to be tabled before Parliament by the end of April.

Once that happens, the bill will enter a phase of public scrutiny where all citizens will be invited to review and respond.

Kenyans Urged to Read the Bill Before Judging It

Kuria called on citizens to study the Finance Bill 2025 carefully before forming opinions. He stressed that the bill is not designed to punish, but rather to guide the country’s financial management.

“Don’t just say ‘reject’ because someone on social media told you to,” he warned. “Open the bill. Identify what part doesn’t work. Suggest a fix. That’s the power you have.”

This call comes amid growing concerns and speculation surrounding the upcoming bill. Discussions online have already turned heated, with many fearing that the proposed changes could bring higher taxes or impact livelihoods.

Kuria emphasized that informed feedback leads to better laws. “The Finance Committee is ready to listen,” he added. “But we need to know what the public really thinks—and why.”

Concerns Mount Over Budget Size and Rising Taxes

The proposed Ksh4.26 trillion budget for the 2025/26 financial year is already causing a stir.

This figure marks a significant increase from the current Ksh3.6 trillion budget. Many fear the bulk of this gap will be filled by increasing taxes on ordinary Kenyans.

Economists and the Parliamentary Budget Office have voiced concerns about the growing gap between high taxes and stagnant wages.

They argue that the proposed financial plan risks burdening citizens while underfunding key sectors such as education, healthcare, and infrastructure.

In response to these concerns, Treasury Cabinet Secretary John Mbadi clarified that the government has not finalized the Finance Bill 2025.

Speaking on April 8 at the launch of the Electronic Government Procurement system, Mbadi addressed misleading reports circulating online.

“We have not approved the Finance Bill 2025,” he said. “We are still reviewing proposals from different sectors. Nothing is final yet.”

Mbadi acknowledged the media’s role in public oversight but asked for patience as the budgeting process continues.

“Let’s be clear: the Treasury is still assessing input from all stakeholders before making any final decisions,” he added.

April 8, 2025
Budget II 2024/25: Major Cuts Hit Housing, Water, Energy, and ICT
The Kenyan government has slashed billions from key sectors in the latest Supplementary Budget II for 2024/25.

The revised budget, tabled in Parliament, aims to align expenditures with available funds through June 2025. However, state departments such as Housing, Water, Energy, and ICT have suffered the deepest cuts.

These reductions could slow down major projects, affecting essential services and development goals.

Billions Cut from Key Sectors in Supplementary Budget II 2024/25

The Supplementary Budget II for 2024/25 has significantly reduced funding for crucial departments, impacting ongoing projects and future initiatives. Below is a breakdown of the hardest-hit sectors:

Water Department Loses Ksh.22 Billion

The State Department of Water faces the biggest cut, with its budget slashed from Ksh.49 billion to Ksh.27.8 billion, a massive decrease of Ksh.22 billion.

The revised allocation includes Ksh.6.6 billion for recurrent expenditure and Ksh.21.2 billion for development projects. This cut affects crucial programs, including:
- Water resource conservation and protection
- Water resource management
- National water and sanitation investment
These reductions could delay clean water supply projects and impact water infrastructure nationwide.

Housing Budget Shrinks by Ksh.11.6 Billion

The Affordable Housing initiative, a flagship project of President William Ruto, also faces budget cuts.

The State Department for Housing’s budget dropped from Ksh.86.5 billion to Ksh.74.9 billion, marking a reduction of Ksh.11.6 billion.

According to the Treasury, the reduction is mainly due to lower donor funding for capital projects. However, an additional Ksh.64.5 million was allocated for salaries under recurrent expenditure. This cut may slow down affordable housing projects and urban infrastructure improvements.

ICT Sector Budget Slashed by Ksh.7.8 Billion

The ICT sector, a key driver of Kenya’s digital transformation, has seen its budget drop from Ksh.20 billion to Ksh.12.2 billion, a loss of Ksh.7.8 billion.

Some of the affected projects include:
- ICT infrastructure connectivity
- Business Process Outsourcing (BPO) development
Notably, the budget for e-government services, a major initiative in President Ruto’s administration, was reduced from Ksh.3.5 billion to Ksh.2.4 billion. This reduction could slow efforts to digitize government services, affecting efficiency and accessibility.

Energy Sector Faces Ksh.7.6 Billion Cut

The Energy sector, essential for powering homes and industries, has also suffered. Its budget dropped from Ksh. 54.1 billion to Ksh. 46.4 billion, a reduction of Ksh.7.6 billion.

This cut could affect ongoing renewable energy projects, electricity connectivity programs, and grid expansion initiatives. Reduced funding may also delay government plans to increase access to affordable electricity.

Other Departments Affected By Supplementary Budget II 2024/25

Apart from Housing, Water, ICT, and Energy, several other state departments have faced budget reductions, including:
- Cabinet Affairs
- Parliamentary Affairs
- Diaspora Affairs
- Transport
- Irrigation
These cuts could lead to delays in policy implementation, infrastructure development, and service delivery.

What These Budget Cuts Mean for Kenyans

The Supplementary Budget II 2024/25 shows the government’s effort to realign expenditures, but the deep cuts in critical sectors raise concerns.

Reduced funding for water, housing, ICT, and energy could slow down key infrastructure projects, limit access to essential services, and affect economic growth.

As Parliament debates this budget, Kenyans will be watching closely to see how the government balances financial constraints while ensuring crucial projects continue.

The impact of these cuts will be felt across the country, particularly in sectors that drive economic progress and social welfare.
February 21, 2025
Govt Warns Pensioners Who Don’t Register for New Self-Help Portal by February Deadline Will Miss Payments: Here’s How to Register
The government has maintained its strong stand that all pensioners must register for the new pensioners’ self-registration portal by 28th February.

According to National Treasury Principal Secretary Chris Kiptoo, all pensioners who will not have registered for the new system by the deadline will face suspension from the payroll.

“We are giving all pensioners to complete their registration by February 28, 2025. This deadline is not negotiable and it will serve as a vital step to organize and streamline pension administration,” Kiptoo said during the launch on Thursday.

“Kindly know that any pensioner who does not complete registration by this deadline will face suspension from the payroll,” Kiptoo continued.

In a bid to curb fraud and inefficiencies in processing claims, the government is rolling out the new system as part of a new end-to-end enterprise resource planning system.

PS Kiptoo revealed that the country holds about Ksh2 trillion in assets in the pension sector with only 26 per cent of Kenyans enjoying pensions.

The introduction of technology in the sector aims to increase these numbers with efficiency and reliability.

The new e-registration portal is a module of an overall proposed e-pension system and is targeting pensioners who have been registering challenges such as loss of records and incorrect personal balances.

The move follows the National Treasury’s failure to meet its target for processing pension claims in the 2022/2023 financial year. The Treasury had aimed to process 28,422 claims but concluded the year with only 18,640 applications, highlighting a decline in the number of files processed due to delays in claim payments.

Kiptoo revealed that the new system is designed to expedite the payment process and reduce congestion in pension offices. Pensioners will receive payment alerts from anywhere, provided they are registered in the system.

Guidelines for the Pensioner Self Registration Portal

1. Eligibility
Before you begin the registration process, ensure that you meet the following eligibility criteria:
1. You must have served as a State Officer, a Member of Parliament, a Civil Servant, a Teacher employed by TSC, Kenya Defense Forces, National Police Service, Prison Service and the NYS.
2. A dependent of the Principal Pensioner who served in the above service.
3. You must have been receiving a monthly pension by October 2024.
2. Requirement
1. Have the following documents (pdf format):
  1. A scanned copy of your National ID card (front and back).
  2. A scanned copy of Bank / SACCO Card (front side) where your monthly pension is being remitted (Account number and name SHOULD be legible).
  3. Scanned birth Certificate (Child) and Death Certificate(Principal Pensioner, where applicable), tax exemption certificate (where applicable)
2. Valid email address and phone number.
3. Registration Process
Follow these steps to complete your registration online:
Step 1: Create an Account
1. Go to the Pension Registration url Click Here
2. Choose User Type: (Principal Pensioner, Dependant Spouse, Dependant Child, Maintenance Case, Dependant Guardian).
3. Input Either (National ID No., Personal Number (used while in service), Pensioner’s Pension Number)
4. Click on the Proceed Button.
5. The details of the Principal Pensioner (Name, National ID No, Employee No, and Pension Number will be displayed). (If details are correct please proceed, if details cannot be displayed try another field, choose support request).
6. Click on the Confirm Button.
7. Provide Your Valid Email Address
8. Click on the Proceed Button.
9. Provide Your Valid Telephone Number.
10. Click on the Proceed Button.
11. You are required to enter your login credentials for your account (You will be redirected to the login page).
Step 2: Log In
1. Use your email or phone number as the user name .
2. Enter password to your account.
3. Click on the Login Button.
Step 3: Complete the Registration
1. The registration process has been divided into various sections (After every section Click Next Button)
2. Fields Marked with an (*) are mandatory
3. Upload required documents in their correct format (PDF) and max size (2MB)
4. Additional Information: Tick any other pension you are receiving (E.g. If you are earning a pension as a principal pensioner and also having a dependant pension).
Step 4: Review, Confirm and Submit 
1. Scan and upload the required documents (ID, proof of employment, proof of address, etc.).
2. Ensure the files are in Portable Document Format (PDF) and within the size limit (Maximum size is 2 MB).
Step 5: Review and Submit
1. 1. Review all the information you’ve entered to ensure accuracy.
  2. Check box to confirm the accuracy of the information provided.
  3. Click on the Submit Button to complete your application.
Once submitted a summary of your data is sent to your email as a proof of registration and completeness.

Note:

You can amend your details after submission if you notice missing fields or erroneous data.
January 29, 2025
Finance Bill: Govt To Take 20pc Of Betting Stakes

Gamblers will pay the government Sh20 for every Sh100 staked after the National Treasury proposed to increase excise tax on betting stakes to 20 percent, in the latest State onslaught to lower the appeal of betting.

The proposal is contained in the draft Finance Bill, 2024 and if adopted by Parliament will increase the tax from the current 12.5 percent.

The Bill is expected to be adopted by Cabinet and tabled in Parliament for debate and approval before the end of June. Currently, the government takes Sh12.50 from every Sh100 similar amount to be wagered.

“The first schedule to the excise duty Act is amended by deleting the words twelve-point five percent and substituting thereof the words twenty percent,” the National Treasury says in the draft Bill.

This is meant to lower the appeal of betting to millions of Kenyans, especially the youth and unemployed who have turned to gambling as a source of income.

The government has in recent years publicly pushed for increased taxes in a bid to curb the betting craze that has made Kenya home to the highest number of youthful gamblers at 76 percent, placing the country ahead of Nigeria and South Africa.

Adoption of the new tax rate will lower the amount that gamblers stake, in turn reducing the possible pay-out from a winning bet.

The 20 percent rate will be in addition to a similar rate charged as withholding tax on every winning bet that the State takes.

Betting firms are under law required to deduct the withholding tax and remit it to the Kenya Revenue Authority (KRA) by the 20^th of the following month.

Besides gamblers, the State has also set its eyes on the betting firms and last year proposed two new taxes through the Gambling Control Bill, 2023 that has since been debated in Parliament.

These were the gambling tax which will be charged at the rate of 15 percent of a betting firm’s gross gaming revenue and a further one percent monthly levy on the same revenue.

But the National Assembly committee on Sports proposed reduction of gambling tax to 13 percent from 15 percent and removal of the one percent gambling tax in its report tabled before the House in December last year.

Increased taxation on the betting industry is bearing the desired impact at least in the eyes of the government. BCLB data shows that betting firms made Sh60 billion in revenue for the 2021/22 year, an 80 percent drop from Sh299 billion posted in the year to June 2019.

Data from the Betting Control and Licensing Board (BCLB) released last year shows that gamblers spend an average of Sh2,500 to bet every month with 80 percent of the winning punters earning less than Sh30,000 per month.

The Treasury has previously failed in bids to tax betting stakes at the rate of 20 per cent, after Parliament gave in to pressure from gaming firms and lowered the rate. The first time the Treasury proposed the 20 percent rate was in 2019.

Excise tax on betting stake was increased to the current 12.5 percent from 7.5 percent in July last year as the State raided the industry in a bid to take away the shine from the betting craze.

May 12, 2024