Sifuna: Gen Z scared govt into dropping new taxes
Nairobi Senator Edwin Sifuna has pushed back against Treasury Cabinet Secretary John Mbadi’s claim that the government deserves credit for not introducing new taxes in the Finance Bill 2025.
Speaking during a Senate plenary session on Wednesday, June 4, 2025, Sifuna said the real reason the government avoided new taxes is fear of a backlash from Gen Z.
Sifuna argued that while Mbadi has publicly taken pride in the decision, it is Kenya’s young people who deserve recognition for standing up against punitive tax measures.
The firebrand politician emphasised that the absence of new taxes is not due to goodwill from government officials, but rather pressure from an increasingly vocal and active Gen Z population.
“CS Mbadi is taking credit for the fact that this year’s Finance Bill contains no new taxes. But the credit goes to Gen Z, who have struck the fear of God into this government. It wouldn’t dare attempt to introduce new taxes,” Sifuna said.
In response, CS Mbadi acknowledged that the government has not introduced major changes to tax policies that would negatively affect taxpayers. He maintained that this was a deliberate move to ease the cost of living and protect Kenyans’ disposable incomes.
Mbadi partially agreed with Sifuna’s comments, noting that Gen Z’s influence could not be ignored. However, he insisted that the Treasury’s decision is also based on sound economic reasoning.
“It is true that we have not made major changes in taxes that will disadvantage the individual taxpayer or reduce their disposable income. This was a commitment. Yes, I know Sifuna attributes it to Gen Z, partly yes, and partly not true,” Mbadi said.
Adding;
“I am one person who does not believe that more taxes will lead to more revenue. That is my stand, both before and after I joined this Cabinet. We share that idea with Gen Z, and I think the government is also sold on the idea that where we have reached, we cannot further reduce disposable income.”
No new taxes
In April 2025, the CS announced that the Finance Bill 2025 would not contain any new taxes. He explained that the move was aimed at reducing the cost of living and giving taxpayers relief amid economic pressure.
To support this, Mbadi said the government was cutting its original Ksh4.3 trillion budget by Ksh130 billion, with the revised proposal expected to come down to around Ksh4.2 trillion. These cuts will focus on reducing operational costs within the national government, including travel and non-essential expenditure.
Additionally, he mentioned that the bill proposes some tax relief measures. These include exempting tea and coffee packaging from tax, lowering the crypto tax rate from 3 per cent to 1.5 per cent, and exempting retirees’ gratuity payments from taxation. Mbadi also reported that the Treasury was revising several tax laws, including the Income Tax Act, VAT Act, Excise Duty Act, and the Tax Procedures Act.
According to Mbadi, these changes were not only part of an economic strategy but also reflected the government’s willingness to listen to public opinion. He noted that the decision was influenced by last year’s widespread protests led by Gen Z against the Finance Bill 2024, which forced the government to retreat on several controversial proposals.
