Ruto Signs Finance Bill 2025 Into Law Amid Gen Z Protests
The signing took place Thursday, June 26, at State House Nairobi, in the presence of top parliamentary leaders from both the Majority and Minority sides.
President William Ruto. Photo/The Kenya Times.
By Janet Philip
President William Ruto has officially signed the controversial Finance Bill 2025 into law, just days after Parliament gave it the green light.
The signing took place Thursday, June 26, at State House Nairobi, in the presence of top parliamentary leaders from both the Majority and Minority sides.
But the ink wasn’t dry before tension spiked in the streets. Gen Z-led protests erupted in parts of Nairobi and other cities, marking a grim anniversary of the 2024 demonstrations that forced Ruto to withdraw last year’s bill after deadly confrontations and national outrage.
This year, despite the pressure, Ruto did not back down.
The Finance Bill 2025 introduces sweeping tax and fiscal changes. It seeks to reshape Kenya’s tax regime by amending key laws including the Income Tax Act, VAT Act, Tax Procedures Act, Stamp Duty, Excise Duty, and the Miscellaneous Fees and Levies Act.
One notable change is the proposed repeal of Section 8 (4) to (9A) of the Income Tax Act, which affects how pensions and retirement benefits are taxed. If passed through implementation, gratuity at retirement will no longer be taxed, a relief for many retirees.
In a progressive shift, the Bill proposes a tax break that does not require you to purchase a home to benefit. If you’re building through a SACCO or personal loan, you’ll now qualify automatically — a big win for informal home builders.
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