Written by Were Kelly
Nairobi, Kenya — Treasury Cabinet Secretary John Mbadi has dismissed reports that the government is imposing Value Added Tax (VAT) on essential commodities such as bread, milk, and maize flour in the proposed 2025 Finance Bill.
Addressing residents during a town hall meeting in Kibera, Nairobi, Mbadi condemned the claims as deliberate misinformation propagated by opposition factions for political gain.
“There is no provision in the Finance Bill before the National Assembly that proposes VAT on bread, milk, or unga,” Mbadi stated emphatically.
He further urged Kenyans to disregard misleading reports circulating on social media, stating, “That bill that is being talked about online is not mine—it is one manufactured by the Opposition.”

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NATIONAL TREASURY
The Cabinet Secretary also debunked widespread rumours that the government is planning to increase VAT from the current 16 percent to 18 percent, calling the claim entirely baseless.
“There is no time that the government of Kenya has thought of increasing VAT from 16% to 18%. I want to just assure you,” he said.
Among other claims Mbadi addressed was speculation that neonatal care services and newborns would be taxed under the new bill—allegations he labelled as part of a broader misinformation campaign.
He noted that such falsehoods were intended to mislead the public and stir unnecessary panic.
His clarification comes as tension brews across the country, with growing public concern over the contents of the 2025 Finance Bill.
Memories of the 2024 anti-Finance Bill protests—where Kenyans poured into the streets to decry increased taxation—have resurfaced, fueling anxiety and calls for transparency.
In response, Mbadi appealed for calm and urged citizens to verify the actual content of the bill through proper channels.
“This country belongs to all of us,” he said. “Even if we want to make the government look bad, let us have facts. Let us not peddle propaganda just to create distortion.”
With the Finance Bill under parliamentary consideration, Mbadi reiterated the importance of informed civic engagement and encouraged Kenyans to remain vigilant but factual in their critique.