Tension in Kenya as new planned tax hikes spark anger

KENYA – The Kenyan government is reportedly planning to introduce new and enhanced taxes in the latest proposed law, a development which has generated widespread criticism in the country.

The price of bread was set to increase after the national treasury proposed to remove the key consumer staple from the list of zero-rated supplies, a value added tax (VAT) exemption list.

This is according to a report by BBC news.

The cost of mobile money transfers, airtime and data was also set to go up as the government seeks to raise an additional US$2.4 billion in taxes, in the financial year that starts in July.

In the proposals carried in the 2024 Finance Bill published on Saturday, the government was also introducing a new motor vehicle tax that would see motorists pay up to US$750 annually to keep their vehicles on the road.

The new taxes were reportedly part of a series of financial measures introduced by President William Ruto’s government to fund its extensive infrastructure and social programmes.

The move had generated sharp criticism with politicians and human rights activists terming it “burdening.”

The opposition had threatened to mobilise protests across the country if the government went ahead with the new tax measures.

Last year, the government introduced several taxes, including a controversial housing levy, despite widespread objection from some Kenyans.

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