If you're wondering what all this talk about Kenya's new Finance Bill is about, you're in the right place. I’m here to explain it to you simply, clearly, and with real-life examples—you'll totally get it. Let’s dive in.

First, what’s a Finance Bill?

Think of the Finance Bill like your family’s monthly budget—only for the entire country! It decides what taxes we pay, how much we pay, and affects how much money people have in their pockets.

The Good News: What's Getting Better?

More pocket money for workers!

Imagine your big sister, Wanjiku, works for a company as a salesperson. Every day, the company gives her money (called an "allowance") to buy lunch, pay for bus fare, airtime or anything else she needs to do her job.

Before, only 2,000 shillings per day was tax-free. Now, up to 10,000 shillings per day will be tax-free. That means more money stays with Ciku instead of going to taxes. Pretty great, right? Now you can ask for more black tax lol.

Better deals when building your home

Maybe your uncle Kilonzo is planning to build a new bungalow  in Kathonzweni. Before, if he borrowed money from the bank (called a mortgage) to build, he couldn’t reduce his taxes from the interest he paid. But now, he can! So he’ll pay less tax and have more money to spend on his new 1 bedroom bungalow 

More money for our grandparents

Let’s say your grandma, Gogo Mary, worked as a teacher for many years and saved up in her pension fund. Before, she’d have to wait until she turned 65 to get her pension money without taxes. Now, after contributing for 20 years, she can enjoy tax-free payments at any age. Gogo Mary can buy more treats for you and worry less about money. Big win. Make sure she knows this.

But Wait... There's Also Some Not-So-Great News

Tougher times for small businesses

Let’s imagine your older cousin Kiprono starts a small bakery. Usually, small businesses take some time to start making profits. Before, Kiprono could carry forward his losses for many years, reducing his future taxes. Now, he can only do this for 5 years. After that, he'll have to pay full taxes, even if his bakery isn’t fully profitable yet.

Things get pricey—especially tech and solar stuff

Maybe your had planned to buy solar panels to save money on electricity at home. Previously, these panels were cheaper because they didn’t have any tax (called VAT). But now, solar equipment will cost 16% more. That’s extra money you will have to pay, making solar less affordable.

The Ugly Truth: Privacy Concerns!

Here's something concerning: the Kenya Revenue Authority (KRA), who collects taxes, will now have access to private business information, including customer data. Imagine you trust Tinder with your personal details. Now, KRA could look at these details, raising questions about privacy. This is if the bill passes as it is.

What’s the Bottom Line for Us Regular Kenyans?

The 2025 Finance Bill has its ups and downs. The good news is it will help workers keep more money, make home ownership easier, and support older folks like your grandma. On the flip side, it will make life harder for small businesses and might increase prices on things like solar equipment and mobile phones.

But don’t stress too much—understanding these changes helps you and your family prepare better. Plus, the bill is still in its early stages, meaning there's room for your voice to be heard. If there's something you're not happy with, you can join in the public participation meetings held in your area. This is your chance to speak up and share your thoughts to shape the future!