MBADI DENIES REPORTS ON VAT ON BASIC COMMODITIES IN NEW FINANCE BILL

Treasury Cabinet Secretary John Mbadi has denied reports that the government has imposed Value Added Tax (VAT) on essential commodities such as bread, milk and maize flour in the 2025 Finance Bill. The CS while in a town hall meeting in Kibera, Nairobi termed the claims as propaganda manufactured by the opposition for malicious gains. Mbadi stated that none of the essential commodities were listed for taxation in the new Finance Bill that is currently before the National Assembly. He also added that reports of the government increasing the VAT from the current 16 percent to 18 percent were not true.

Additionally, Mbadi also clarified on reports that the government was intending to tax neonatal care and newborn babies, dismissing them as untrue and said it was all propaganda with aims of misleading Kenyans. His clarification comes after growing unrest over the rumored additions to the 2025 Finance Bill. The 2025 Finance Bill tabled in parliament includes various proposals aimed at enhancing revenue collection and economic growth. However, the specific details of the bill’s provisions, particularly concerning VAT on staple foods, remain a subject of public interest and scrutiny.

In 2024, similar proposals to tax basic commodities like bread and cooking oil led to widespread protests across the country. In response to public outcry, the government withdrew these proposals, with President William Ruto stating that he would not sign the Finance Bill into law. This decision followed violent clashes between the protestors and police resulting to many deaths and injuries.

Mbadi has called upon Kenyans to take their time to go through the new Finance Bill to avoid being misled and fall prey to misinformation attempts.