NAIROBI,– Kenya’s government plans to reintroduce some of the tax measures it scrapped in June following deadly protests, raising concerns over a potential resurgence of unrest.
Finance Minister John Mbadi revealed the government’s intentions during an interview with Citizen TV on Sunday night, explaining that the taxes were needed to fund key expenditures, including teacher salaries.
Mbadi emphasized that not all of the previously proposed tax measures would be revived, and some would be tweaked to lessen their impact. However, the announcement has already sparked discontent among those who participated in the youth-led protests that gripped the nation earlier this year.
Hanifa, a prominent figure in the protest movement, expressed her frustration on X (formerly Twitter), stating, “The struggle continues. @WilliamsRuto, I dare you to bring back the finance bill.” Her post echoed the sentiments of many who are ready to take to the streets again if the tax measures are reinstated.
President William Ruto had abandoned the controversial finance bill on June 26 after sustained pressure from demonstrators who stormed parliament and launched nationwide protests. The bill had proposed new taxes and increases aimed at raising an additional 346 billion shillings ($2.7 billion). Protesters argued that the measures would worsen the economic struggles faced by many Kenyans, who are already grappling with rising living costs.
Mbadi, who was brought into the cabinet from the opposition in an effort by Ruto to stabilize his government, had previously ruled out further tax hikes during his first public remarks on August 4. However, in his recent interview, he announced the government’s intention to reintroduce an eco-levy on most goods, while dropping plans to tax essential products such as sanitary pads—a key point of contention during the earlier protests.
“For the eco-levy, we will target areas that do not affect the common citizen,” Mbadi assured, noting that the new measures were essential to fund emerging government expenditures. He added that the revised tax proposals would be submitted to parliament by September 30.
The government faces the difficult task of balancing the demands of financially strained citizens with the expectations of international lenders such as the International Monetary Fund (IMF), which has urged Kenya to cut its deficits to secure additional financing. After shelving the finance bill in June, the government was forced to reduce spending and widen the fiscal deficit.
According to Citizen TV, the revised tax measures aim to raise 150 billion shillings. Mbadi also dismissed criticisms from businesses affected by the eco-levy, stating, “This country is not a dumping place. If you are injurious to the environment, then you must pay to make good what you have caused.”
The finance minister noted that the government plans to reintroduce 49 clauses from the original bill, some of which are intended to streamline laws without imposing new taxes. Neither Mbadi nor the finance ministry responded to Reuters’ requests for further comment on the interview.
Source: Reuters