President William Ruto has assured Kenyans that the Finance Bill 2025 will play a crucial role in boosting both enterprise and productivity across the country. Speaking during his Labour Day address, the President highlighted the Cabinet’s approval of the Bill, which is designed to enhance efficiency, competitiveness, and expand economic opportunities for businesses and workers alike.
The provisions of the Finance Bill 2025 are tailored to provide targeted relief to businesses and employees, directly addressing the need to foster a productive and entrepreneurial environment. Key among the changes is a provision allowing employers to apply eligible tax reliefs and exemptions directly when calculating Pay As You Earn (PAYE) deductions. This is a departure from the current system, where tax reliefs can only be claimed from the Kenya Revenue Authority after filing returns. The new measure will significantly increase efficiency and immediately benefit workers by improving their after-tax pay.
In his address, President Ruto also emphasized Kenya’s commitment to improving workers’ rights and protections globally. He announced that the government plans to ratify two important International Labour Organisation (ILO) conventions by next year. Convention 189 of 2011, which protects the rights of domestic workers, and Convention 190 of 2019, which seeks to eliminate violence and harassment in the workplace, will both be ratified, reinforcing the government’s commitment to international labor standards.
The President also defended the recent salary deductions for affordable housing, health insurance, and pension schemes, urging workers to focus on the long-term benefits these initiatives will provide. Despite the immediate reduction in take-home pay, Ruto assured that these contributions are key to improving Kenya’s social safety nets and fostering sustainable development for the country’s future.
As the Finance Bill 2025 progresses, it promises to serve as a critical tool in supporting Kenya’s economic growth and ensuring that the spirit of enterprise and productivity thrives among businesses and workers.
