Kenya to Reintroduce Controversial Tax Measures

Kenya plans to reintroduce controversial tax measures, sparking debate and concern over their potential impact on the economy and taxpayers.

According to John Mbadi, Kenya’s Finance Minister, the government is planning to reintroduce a number of tax measures that were previously rescinded due to violent demonstrations in June.

During an interview with Citizen TV news agency on Sunday, Mbadi clarified that although not all of the tax measures would be reintroduced and some modifications might be made, they are indispensable to fund critical expenses such as remunerating teachers.

He stated that 47 amendments, including the eco-levy, have been arranged. Nonetheless, they will eliminate the prohibition on sanitary pads and other delicate goods.

According to Mbadi, the government is considering nearly 49 tax measures designed to produce about KES 150 billion ($1.2 billion) in revenue.

One of the suggested actions is to reintroduce an “eco-levy” on products such as electronic devices and plastic packaging, with the aim of tackling environmental issues by minimizing waste.

Mbadi contended that those who damage the environment should be held accountable for restoring the harm they have inflicted.

The implementation of the new tax measures as per Citizen TV, which are elaborated in the Tax Amendment Bill, is anticipated to take place by September’s end.

On June 26, President William Ruto of Kenya relinquished the Finance Bill for this year. The bill had been intended to increase taxes by $2.7 billion, but protesters stormed parliament and organized demonstrations throughout the nation, causing the government to retract its proposal.

Most of Ruto’s cabinet was dismissed on July 11. Nevertheless, the protests intensified and led to numerous fatalities.

Having championed the Finance Bill as crucial for obtaining IMF funding and averting a debt default, the Kenyan leader announced that his government is exploring substitute options. Amongst them are potential budget cuts to their office.