Treasury CS John Mbadi Meets KRA Commissioner General, Hints At Introducing More Taxes

• The National Treasury said the government is committed to boosting revenue collection and ensuring efficient financial management to drive Kenya's economic growth
• CS John Mbadi Mbadi emphasised that the eco levy, originally in the Finance Bill 2024, would return with amendments targeting pollution without burdening ordinary citizens
• Tax consultant Kipkemboi Rotuk told TUKO.co.ke that the government could amend various tax laws to plug the budget deficit

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.

New National Treasury Cabinet Secretary (CS) John Mbadi has met with the Kenya Revenue Authority (KRA) leadership team, including Commissioner General Humphrey Wattanga.

According to a statement shared by the exchequer on its X handle, the CS's visit to KRA reaffirms the government's commitment to boosting revenue collection and ensuring efficient financial management to drive Kenya's economic growth.

"Key discussions during the CS's meeting with @KRACorporate included tax reforms, the digitisation of revenue processes, and strategies to expand Kenya's tax base in an effort to secure a more robust and sustainable economic future for the country," Treasury stated.

How govt can increase revenue collection

After the Finance Bill 2024 was withdrawn, Kipkemboi Rotuk, a tax consultant and advocate of the High Court of Kenya, explained that the government could amend various tax laws.

He said amendments in the National Assembly could help the state plug the KSh 300 billion budget deficit.

"The government can still amend the clauses in the various acts and regulations plus previous Finance Acts that still have a force of law for any multi-year proposals. But it is highly unlikely, having heard the president talk of possible intentions to borrow more to cover for the KSh 300 billion gap generated after the withdrawal of the Finance Bill 2024," Rotuk told TUKO.co.ke.

How Mbadi plans to revive Finance Bill 2024

Mbadi highlighted some measures he will take to fund the cash-strapped exchequer.

The former nominated lawmaker explained that the defunct Finance Bill 2024 contained provisions that could help the country out of its current situation and enhance economic growth.

Mbadi said that although the bill cannot be revived entirely, its proposed tax-exempt measures could help cut tax expenditures.

He said tax refunds on items zero-rated from 16% VAT benefit only business owners and companies, not ordinary citizens.

The CS also wants to extend the tax amnesty programme, which he noted was significant in enhancing revenue collection.

Will Mbadi introduce an eco levy?

Mbadi emphasised that the eco levy, originally in the Finance Bill 2024, would return with amendments targeting pollution without burdening ordinary citizens.

The reintroduction of these tax changes aims to help the government generate KSh 150 billion in tax revenue.

Mbadi also hinted at major reforms within the Kenya Revenue Authority (KRA) to address tax evasion and increase revenue collection by up to KSh 400 billion.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke