25th April 2025: The Kenya Private Sector Alliance (KEPSA) is pushing for reforms in the Finance Bill 2025 to foster industrial resilience, tax efficiency, and stronger private sector participation in national planning.

In an engagement with the National Assembly Committees on Finance & National Planning; Budget and Appropriations; and Trade, Industry, and Cooperatives Committees, the private sector presented proposals aimed at shaping Kenya’s fiscal policy and legislative agenda to promote competitiveness, investment, and inclusive growth.

While highlighting the role of fiscal policy in shaping Kenya’s global competitiveness, KEPSA Chairperson Dr. Jaswinder “Jas” Bedi noted that the dialogue between Parliament and the private sector has entered a new, proactive phase—one where fiscal policymaking is no longer reactive, but co-created.

“The March 25th dialogue - the first of this Finance Bill 2025 series of engagements - laid bare the urgency of reform: Kenya’s manufacturing base is eroding, SMEs remain overburdened by tax complexity, and fiscal unpredictability continues to stifle investment,” said Dr. Bedi.

He added that these challenges are not isolated but are systemic and require structural, legislative, and administrative responses. “As we reconvene, this meeting aims to go beyond diagnosis. We are here to translate well-articulated proposals into implementable commitments, particularly as we shape the Finance Bill 2025. By deepening our engagement now, we create the opportunity to institutionalise a fair, efficient, and growth-oriented fiscal framework that works for the state and the productive sectors of our economy.”

The Finance and National Planning Committee Chair, Hon. (CPA) Kimani, Francis Kuria M.P., acknowledged that “Predictability and efficiency in tax are essential in building trust in the government. We recognise that much more must be done to align fiscal policy with national development goals and investor expectations, and one of the recommendations we have is to institutionalise a Medium-Term Revenue Strategy (MTRS), which will provide a stable and transparent tax policy framework over a 3–5-year horizon.”

He further recommended strengthening public-private dialogue and ensuring the private sector is involved in the early stages of tax policy design, digitization of revenue collection by enhancing investment in systems like iTax and eTIMS to improve efficiency and transparency in tax administration, as well as a review of the tax expenditure reporting to ensure that incentives granted are targeted, time-bound, and provide measurable value to the economy.

This will help co-create forward-looking, business-friendly, and equitable fiscal solutions that enhance competitiveness, foster sustainable growth, and position Kenya to navigate domestic economic challenges and emerging global trade protectionist trends.

He was echoed by Funyula Member of Parliament and Member of the Trade, Industry & Cooperatives Committee, Hon (Dr.) Wilberforce Ojiambo Oundo. "Balancing international obligations with domestic economic interests is a serious balancing act that cannot be left to one sector of the country.”

KEPSA CEO Carole Kariuki, while emphasising the need for stakeholder engagement and partnership between the private sector and the government to drive development, highlighted the need for the government to implement infrastructure that supports business growth, not just for public demand.

“We cannot continue being reactive to policy discussions. These interactions represent intentional efforts for proactive collaboration between the private sector and key committees involved in the Finance Bill 2025 discussion,” said Ms. Kariuki in her closing remarks.

The private sector, led by KEPSA, committed to sustaining the structured public-private dialogue leading to the Finance Bill 2025. This, in turn, solicited a positive response from the National Assembly, led by Hon. (CPA) Kimani Kuria, who invited KEPSA Members to make submissions before the Finance and National Planning Committee next week.

The event, supported by the Konrad-Adenauer-Stiftung (KAS), a German political foundation committed to promoting democracy, peace, freedom, and the rule of law worldwide, was attended by key industry leaders, government officials, and youth. In Kenya, KAS focuses on strengthening democracy and inclusive governance by engaging the private sector, civil society, religious groups, political actors, and other economic stakeholders and empowering citizens to participate actively in political and economic processes.