Treasury Cabinet Secretary John Mbadi has dismissed reports suggesting that the government has introduced Value Added Tax (VAT) on staple items like bread, milk, and maize flour in the 2025 Finance Bill.
Addressing a town hall meeting in Kibera, Nairobi, Mbadi described these allegations as propaganda fabricated by the Opposition for their own political gain.
Mbadi emphasized that none of the essential goods are included for taxation in the new Finance Bill currently before the National Assembly.
“Unfortunately, you are referring to a propaganda version of the Finance Bill, not the one that is actually before the National Assembly. In the Finance Bill before the National Assembly, there is no clause that imposes VAT on bread, milk, or unga,” Mbadi explained.
“That bill being circulated on social media is not the one I presented; it is a fabricated version created by the opposition,” he added.
He also denied claims that the government plans to raise the VAT from the current 16 percent to 18 percent, calling such reports false.
“There has never been any consideration by the Kenyan government to increase VAT from 16% to 18%. I just want to assure you of that,” Mbadi stated.
He also addressed rumours that the government planned to impose taxes on neonatal care and newborn babies, dismissing these claims as false. Mbadi explained that such misinformation was part of a propaganda campaign aimed at misleading the public.
His clarification came amid rising concerns over alleged changes to the 2025 Finance Bill. Many Kenyans were demanding clear information as whispers of protests, similar to those seen last year, began to spread.
During the 2024 anti-Finance Bill protests, citizens took to the streets opposing new tax measures, but despite public resistance, Parliament still approved the bill.
