By C. Perera, JadeTimes News
Kenyans are protesting against a new finance bill that introduces contentious tax proposals, inciting widespread anger. The bill, perceived as imposing additional burdens on citizens and businesses amid a high cost of living, has led to significant public outcry. Youth led protests, though mostly peaceful, have resulted in at least one death, hundreds of injuries, and numerous arrests, which have been condemned by lawyers and human rights groups. Despite the government retracting some controversial measures, public dissatisfaction remains high, with many demanding the bill's complete withdrawal. Social media has seen calls for protests and demands for lawmakers to oppose the tax increases.
Key original proposals that sparked outrage included a 16% sales tax on bread, a 25% duty on cooking oil, increased taxes on financial transactions, and a new annual tax on vehicle ownership at 2.5% of the vehicle's value. These measures have since been dropped by the government amid public backlash.
The eco levy, intended to charge for products contributing to e waste, was another contentious provision. Critics argued it would raise costs for essential items like sanitary pads and baby nappies, impacting affordability for many. The government has since amended the levy to apply only to imported products to encourage local industry growth. However, the levy still affects digital products like mobile phones and cameras, potentially harming the digital economy.
Despite some amendments, other measures remain. The bill introduces a 16% tax on goods and services for specialized hospitals, causing concern about increased costs for critical health services. Additionally, the bill proposes raising import taxes from 2.5% to 3%, likely leading to higher prices for imported goods.
In response to the protests, President William Ruto has promised to engage in dialogue with the youth, but tensions remain high. Critics argue that existing taxes, such as higher import fees and an increased road maintenance levy on fuel, contribute to a sense of prolonged public frustration. Many Kenyans believe the government is not adequately addressing their concerns about overtaxation, wastage, and corruption.
The finance bill is currently under parliamentary review, with the governing coalition having sufficient numbers to pass the amended bill. Once approved, the president has 14 days to sign it into law or request further amendments. The government might also consider deferring the bill to alleviate pressure, though this is unlikely.
