Kenya’s government has decided to backtrack on some of the proposed taxes included in this year’s contentious finance bill following widespread protests and public outcry. The move comes after police in the capital, Nairobi, resorted to firing tear gas and using water cannons to disperse angry demonstrators.
The parliamentary finance committee made the decision to scrap a 16% tax on bread, as well as higher levies on cooking oil and mobile money services. President William Ruto, who has been pushing for new taxes to reduce the country’s national debt, has faced criticism from opponents who argue that these measures could hinder economic growth and result in job losses.
The announcement of the U-turn was made by Kuria Kimani, the chairman of the parliamentary finance committee, during a press briefing attended by President Ruto and other lawmakers. Kimani cited concerns about the rising cost of living as the reason for dropping some of the tax proposals.
In addition to the taxes on bread and other essential items, the government has also reversed plans to introduce an eco tax targeting products deemed harmful to the environment, such as packaging, plastics, and tires. The revised tax will now only apply to imported goods.
While President Ruto did not address the public during the briefing, the decision to backpedal on the finance bill has been viewed as a response to mounting public pressure. Ruto had previously called for more taxation in Kenya, arguing that citizens were not contributing enough, but acknowledged the challenges involved in implementing additional levies.
In recent years, the government has increased taxes on salaries, fuel, and gross sales, as well as introduced new levies like the housing levy and higher health insurance contributions. The finance bill is set to be debated by lawmakers this week, prompting continued protests in the capital.
The scrapping of the proposed taxes signals a significant shift in the government’s approach to fiscal policy in response to public discontent. The decision underscores the power of civic engagement and activism in influencing policy decisions impacting the daily lives of Kenyan citizens.
For more updates on developments in Africa, visit BBCAfrica.com and follow BBC Africa on social media platforms such as Twitter, Facebook, and Instagram for the latest news and analysis.
