President William Ruto has signed the Finance Bill 2025 into law, introducing sweeping fiscal reforms aimed at spurring economic growth and boosting investor confidence.
The signing took place at State House, Nairobi, alongside the Appropriations Bill and the Supplementary Appropriation Bill.
Key changes in the new law include a significant increase in the tax-exempt subsistence allowance from Sh2,000 to Sh10,000 per day.
The controversial Digital Assets Tax has been replaced with a 5% excise duty on transaction fees charged by virtual asset providers.
In a bid to attract large-scale investors, the Act reduces the Capital Gains Tax from 15% to 5% for investments certified under the Nairobi International Financial Centre (NIFC).
Farmers and manufacturers stand to benefit from fresh tax exemptions on essential inputs, aimed at lowering production costs and improving competitiveness.
However, the law introduces new excise duties targeting betting, gaming, and digital services—measures expected to boost state revenue.
The Finance Act 2025 is part of the government’s broader strategy to realign Kenya’s fiscal framework, encourage innovation, and enhance service delivery.
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