National Assembly to prioritize VAT and Excise Duty Amendment Bills upon resumption of sittings 

𝐌𝐚𝐫𝐜𝐡 𝟑𝟏𝐬𝐭 𝟐𝟎𝟐5

The National Assembly is set to prioritize the Value Added Tax (Amendment) Bill, 2025, and the Excise Duty (Amendment) Bill, 2025, upon resumption from the short recess tomorrow, April 1, 2025. 

Speaker, Hon. Moses Wetang'ula has directed the House Business Committee to fast-track their consideration in line with Standing Order 42(2).

The Value Added Tax (Amendment) Bill, 2025, published on March 13, 2025, seeks to amend the Value Added Tax Act, Cap. 476, to clarify the commencement date of exemptions granted before January 1, 2024, on capital goods for investment in manufacturing valued at not less than KSh 2 billion.

Speaker Wetang’ula confirmed in a notification issued on March 26, 2025, that the Bill had matured for its First Reading and has been determined a priority Bill. The Departmental Committee on Finance and National Planning will consider it and table its report upon the National Assembly's resumption.

If enacted, the Bill will eliminate ambiguities in tax exemptions, creating a more predictable tax regime for investors in the manufacturing sector.

Similarly, the Excise Duty (Amendment) Bill, 2025 (National Assembly Bill No. 7 of 2025) will be fast-tracked following a notification issued by Speaker Wetang’ula on March 18, 2025.

The Bill proposes amendments to the Excise Duty Act to remove excise duty on imported fully assembled electric transformers, reducing costs for power sector investors.

The Excise Duty (Amendment) Bill, 2025 has been referred to the Departmental Committee on Finance and National Planning for immediate consideration.

Hon. Ichung’wah requested that both Bills be prioritized upon resumption, a request that has been granted. 

If passed, it is expected to enhance investment in Kenya’s power sector by lowering import costs for transformers, a critical component in electricity distribution.

The National Assembly will also consider the Division of Revenue Bill, 2025 a Bill which determines how money collected by the National Government is shared between the National and County Governments for the 2025/26 financial year.

The Bill ensures that both levels of government receive their equitable share of revenue to deliver services such as healthcare, education, infrastructure, and security. It also upholds the principles of devolution by guaranteeing counties enough funds to perform their functions.

For the 2025/26 financial year, the National Treasury proposes allocations Ksh. 2,419.4 billion for the National Government and Ksh. 405.1 billion for County Governments. This amount allocated to counties has increased by Ksh. 17.6 billion from Ksh. 387.4 billion in the 2024/25 financial year.

Legislators will also conduct approval hearings for 

candidates nominated for appointment as Principal Secretaries, Cabinet Secretaries and Diplomatic postions within the month of April. 

Find the Value Added Tax (Amendment) Bill, 2025, the Excise Duty (Amendment) Bill, 2025 and the Division of Revenue Bill, 2025 here