President Ruto Enacts Finance Bill 2025
President William Ruto signed Finance Bill 2025 into law on Thursday. This new legislation, which aims to streamline tax administration and increase government revenue, is set to take effect on July 1, 2025.
The law has made several amendments to the Income Tax Act, the Stamp Duty Act, the Excise Duty Act, the Tax Procedures Act, and the Value Added Tax Act, which are expected to sustain revenue collection for the fiscal year 2025/26.
Among the amendments made is the Income Tax Act, which now mandates employers to apply all applicable reliefs, deductions, and exemptions to an employee automatically, as provided by the relevant law.
The law includes provisions related to persons with disabilities, specifically addressing tax exemptions and incentives for individuals with disabilities, a move that aligns with the Persons with Disabilities Act, 2025.
The Disability Act aims to promote inclusion and equality for persons with disabilities by providing financial relief and support.
Therefore, employees with disabilities who have a valid certificate from the National Council for Persons with Disabilities (NCPWD) and the Kenya Revenue Authority (KRA) are not required to pay income tax on up to KES 150,000 each month, totaling KES 1.8 million per year.
The Finance Act also includes tax incentives for donations, bequests, and subsidies made to benefit persons with disabilities.
The Persons with Disabilities Act, 2025, restructured the National Council for Persons with Disabilities (NCPWD), clarifying its functions, powers, and the institutional framework for protecting and monitoring the rights of persons with disabilities
It was passed by the Senate on February 1, 2025, and subsequently approved by the National Assembly on March 16, 2025.
Tags: Finance Bill William Ruto Crystal Asige CS MBADI NCPWD Signstvkenya Editor's Pick
