Kenya Set to Reintroduce Tax Measures Amidst Growing Unrest

Kenya’s government is poised to reinstate certain tax measures previously scrapped following intense protests in June, a move that could stir further unrest.

Finance Minister John Mbadi revealed in a Sunday night interview with Citizen TV that while some of the original measures will be revised, they are essential for covering critical expenditures, including teachers’ salaries.

The announcement has sparked a fresh wave of discontent among activists. Hanifa, a prominent figure in the youth-led protests, expressed her frustration on X, stating, “I was planning a month-long social media hiatus… but it seems rest is elusive. The struggle continues. @WilliamsRuto, I challenge you to bring back the finance bill.”

President William Ruto had initially withdrawn the controversial finance bill on June 26 and subsequently reshuffled his cabinet, succumbing to pressure from demonstrators who had besieged parliament and staged nationwide protests. The bill, which proposed new taxes and increases totaling 346 billion shillings ($2.7 billion), was criticized for exacerbating the financial strain on Kenya’s already burdened citizens.

ReadAlso

All aboard ‘The Debt Express’: China’s pincer movement on Africa

How jobseekers from Africa are being tricked into slavery in Asia’s cyberscam compounds

In his August 4 address, Mbadi had previously dismissed the prospect of further tax hikes. However, in the recent interview, he disclosed plans to reintroduce an eco-levy targeting a range of goods, while excluding essential items like sanitary pads—key issues that had fueled protester outrage.

“For the eco-levy, we will focus on areas that won’t directly impact ordinary citizens,” Mbadi stated. The revised measures, intended to address emerging government expenses, will be presented to parliament by September 30.

Caught between the demands of a strained populace and the expectations of international lenders like the IMF, which is pressing for fiscal discipline, the government has been forced to adjust its spending and broaden the fiscal deficit.

According to Citizen TV, the new tax measures are expected to generate 150 billion shillings. Mbadi defended the eco-levy against criticism from local businesses, asserting, “This country is not a dumping ground. If you harm the environment, you must contribute to its restoration.”

The government plans to reintroduce 49 clauses from the original bill, aiming to streamline regulations without imposing new taxes.

($1 = 128.25 Kenyan shillings)