Treasury Cabinet Secretary John Mbadi has firmly denied allegations that the 2025 Finance Bill proposes Value Added Tax (VAT) on essential commodities such as bread, milk, and maize flour.
Addressing residents during a town hall meeting in Kibera, Nairobi, Mbadi dismissed the claims as misinformation driven by political interests. He accused the Opposition of circulating a false version of the Finance Bill in an attempt to mislead the public.
“Unfortunately, what’s being discussed out there is not the actual Finance Bill tabled in Parliament,” he said. “In the version currently before the National Assembly, there is no clause introducing VAT on bread, milk, or unga. What’s trending on social media is a fabricated document.”
Mbadi also refuted reports suggesting that the government plans to raise VAT from 16% to 18%, calling such claims baseless. “At no point has the government considered increasing VAT to 18%. I want to assure Kenyans that this is not under discussion,” he emphasized.
Addressing another concern circulating online, the CS dismissed allegations that the government intends to impose taxes on neonatal care or newborn babies. He termed these claims as part of a broader misinformation campaign designed to stir public anxiety.
Mbadi’s remarks come amid a wave of public concern over the contents of the 2025 Finance Bill. The growing speculation has prompted comparisons to the protests witnessed in 2024, when citizens demonstrated against contentious tax proposals. Despite widespread public opposition at the time, Parliament proceeded to pass the bill.
As the current Finance Bill moves through legislative review, the Treasury is urging the public to rely on official documents and verified information to avoid confusion and unnecessary panic.
