The Kenyan government’s proposal to implement new and increased taxes has sparked widespread criticism in the country.
Among the changes, the price of bread is expected to rise as it’s removed from the list of zero-rated supplies for value-added tax (VAT) exemption.
Additionally, costs for mobile money transfers, airtime, and data are slated to increase, aiming to generate an extra $2.4bn (£2bn) in taxes for the upcoming fiscal year starting in July.
The government’s 2024 Finance Bill also includes a new motor vehicle tax, potentially costing motorists up to $750 annually.
These measures, part of President William Ruto’s agenda to finance infrastructure and social programs, have faced strong opposition, with critics labeling them as burdensome.
The opposition has threatened nationwide protests if the government proceeds with the proposed tax changes, echoing discontent over previous tax introductions, such as the controversial housing levy implemented last year despite public objection.
Kenya’s economic landscape has been marred by recent tax measures and escalating food and fuel prices, adding to the financial strain felt by citizens.
Opposition leader Raila Odinga has urged his supporters to join countrywide protests demanding President William Ruto address the rising cost of living and address concerns regarding the legitimacy of the previous year’s presidential elections.
The government’s move to introduce new taxes has not been well-received, with politicians and human rights activists condemning the decision as burdensome for the already struggling populace.
Despite objections from various quarters, President William Ruto’s administration is steadfast in its pursuit of these tax reforms to fund ambitious infrastructure projects and social initiatives.
The clash between the government’s fiscal policies and public sentiment underscores the growing discontent and socio-economic challenges facing Kenya.
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