By Judy Maina
NAIROBI, Kenya — In a landmark decision on May 14, 2025, the High Court of Kenya issued an injunction preventing the government, telecommunications companies Safaricom and Airtel, and the Communications Authority from disrupting internet access.
Justice Bahati Mwamuye’s ruling came in response to a lawsuit filed by seven civil society organizations challenging previous internet shutdowns during protests and national examinations, which they argued violated constitutional rights.
The court’s order prohibits any form of internet shutdown, throttling, or disruption of digital communications until the case is fully adjudicated.
The petitioners cited incidents such as the throttling of internet speeds during the June 2024 anti-Finance Bill protests and the blocking of social media platforms during the November 2024 national exams as examples of the government’s “emerging digital authoritarianism.”
Kennedy Kachwanya, Chairperson of the Bloggers Association of Kenya, emphasized the significance of the ruling, stating,
“The outcome of this case will have far-reaching implications for millions of Kenyans who rely on unimpeded connectivity for livelihoods, education, and civic engagement.”
Finance Bill 2025 Introduced with Significant Tax Reforms
On the same day, Kenya’s National Assembly introduced Finance Bill No. 19 of 2025, proposing substantial tax reforms aimed at stimulating economic growth and enhancing tax compliance. Key proposals include:
Increased Per Diem Exemption: The tax-free daily allowance provided by employers would rise from KES 2,000 (approximately USD 15) to KES 10,000 (approximately USD 77).
Corporate Tax Incentives for Start-Ups: Start-ups certified by the Nairobi International Financial Centre Authority would benefit from a reduced corporate income tax rate of 15% for the first three or ten years, and 20% for the following four or ten years.
Reduced Digital Asset Tax: The tax rate on income earned from digital assets would decrease from 3% to 1.5% of the transfer or exchange value.
Extended VAT Refund Review Period: The review period for Value Added Tax refunds would extend from 90 to 120 days.
These proposed amendments are set to take effect from July 1, 2025, pending parliamentary approval.
