Wamuchomba warns of hidden taxes in Finance Bill 2025

Speaking to Spice FM on Wednesday, Wamuchomba criticized the approach taken in the 2025 Finance Bill. 

"It is not telling you that we are adding tax on bread; they're not telling you they are adding tax on medication. They're amending other laws to facilitate the addition of taxes and the removal of tax reliefs. A lot has been hidden from the public eye, and we must read between the lines," Wamuchomba stated.

The MP specifically challenged Cabinet Secretary Mbadi's public statements on the Bill, saying they have no basis. 

"You know when Mbadi says sugar and bread have not been touched, you know he's closing their eyes. Because he doesn't want to tell them that those factories that have been returned compensating tax will pay, and they manufacture sugar, they will have to pay this tax and increase the price of sugar to the end user," she said.

Wamuchomba emphasized that while products may not face direct taxation, producers are being targeted with increased costs that will inevitably be passed on to consumers. 

She is of the opinion that the 2025 Finance Bill does not favour hustlers, referring to small-scale entrepreneurs and informal sector workers.

The MP questioned the authenticity of public participation in the Finance Bill process, citing the case of Rose Njeri, a woman who created a website for public submissions, only to face arrest. 

"If this Finance Bill truly has no new tax burdens, then why is the regime so scared when a young girl, Rose Njeri, comes up with a website where people are meant to send their submissions? Why would they arrest her? It's because they know they are hiding something, and they don't want people to know," Wamuchomba noted.

Regarding small businesses, Wamuchomba highlighted amendments in the Tax Procedures Act within the Finance Bill, which introduces more electronic tax invoice requirements.

She said the amendments also grant tax commissioners overwhelming powers to make advanced pricing agreements and declare agreements void due to misrepresentation.

The MP expressed concern about the deteriorating business environment, noting that increased penalties for non-compliance could backfire. 

"Because I know Kenyans, people will evade, they will just run away. I am from Mt. Kenya, and we do business. I can tell you, people are going to Tanzania to sell their products! The number of hawkers in Kenya is going down. Because doing business in Kenya is becoming too hard," she stated.

Despite potential political consequences, Wamuchomba remained resolute about speaking out. 

"Some of us have turned down very serious tempting offers to stop what I am doing here, and stay silent. By telling you these things, I know I'm exposing myself. But my conscience tells me this is the right thing to do. And if I'm not re-elected next time, at least Kenyans will say they had a member of parliament who told them the truth about the Finance Bill," she stated.

If the Finance Bill passes, Wamuchomba predicted several consequences: increased taxes for self-employed and informal sector workers, higher prices for polythene packaging affecting businesses selling hair oil and medicine, increased costs for digital marketing and content creation, higher software royalties, and more demanding tax schedules. 

She warned that all exempted products will be subjected to 16% Value Added Tax (VAT), health products and medication costs will rise, and low-income earners will face increased taxable incomes.

"Those people who go to loan shylocks to borrow money, quick loans now beware! There's a new tax called the Digital Lending Tax, officially referred to as Direct Tax Charges, and it has been introduced for anyone involved in digital lending. That means borrowing will become more expensive, and the common citizen will feel the pinch," Wamuchomba said.

Wamuchomba maintained that the government is conducting a public relations campaign to obscure the true impact of the Finance Bill. 

"This government is playing PR on you, that's why it's sending CS Mbadi to convince people, most of whom haven't read the Finance Bill, that it doesn't introduce any new taxes. This government is playing PR on you, on your livelihoods, and I am here to tell you the truth, whether I'm loved or not."