President William Ruto has assented to three key bills passed by the National Assembly, including the Finance Bill 2025, the Supplementary Appropriation Bill 2025, and the Appropriations Bill 2025.

The new laws define the government’s revenue-raising measures, including tax policies, and outline how public funds will be spent in the 2025/2026 fiscal year.

MPs quietly approved the 2025 Finance Bill on Thursday last week, with minimal amendments to the original proposals submitted by the National Treasury on May 6.

According to a parliamentary brief, the Finance Bill 2025 amends several tax-related statutes, including the Income Tax Act, the Value Added Tax Act, the Excise Duty Act, the Tax Procedures Act, the Miscellaneous Fees and Levies Act, and the Stamp Duty Act.

President Ruto signs Finance Bill 2025 into law. pic.twitter.com/WEfo8D8RvA

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According to the government, the adjustments to the taxation laws are necessary to sustain its ambitious, and record-breaking, Sh4.2 trillion budget.

The Ruto administration says the measures are designed to promote local manufacturing, attract investment, and boost overall revenue.

While the Finance Bill outlines how the government will generate funds, the Appropriations Bill details how the funds will be allocated and spent.

“The Appropriation Bill, 2025, seeks to authorise the National Treasury to issue a sum of Sh1.8 trillion out of the Consolidated Fund and apply it towards the supply granted for the service of the year ending June 30, 2026,” said the National Assembly.

It further authorises ministries, departments, and agencies to utilize an additional Sh671 billion as Appropriation-in-Aid, revenue they collect directly.

“The Appropriation Bill, 2025, provides the legal framework for the utilisation of approved Estimates of Revenue and Expenditure for FY 2025/2026. The Estimates are constituted of an allocation of Sh1.8 trillion in recurrent expenditure and Sh744 billion in development expenditure.”

Funding has been allocated to flagship programs in health, education, food security, youth empowerment, access to affordable credit for small businesses, and agriculture.

The signing of the bills marks a stark contrast to last year, when the annual tax review sparked mass protests, largely led by youth, forcing the government to withdraw some proposals.

President Ruto signed the Bills during a ceremony at State House, Nairobi, on Thursday morning, attended by National Assembly Speaker Moses Wetang’ula and Treasury Cabinet Secretary John Mbadi.

Also present were Budget and Appropriations Committee Chair Samuel Atandi and Finance and National Planning Committee Chair Kuria Kimani, the bills’ sponsors.