Kenya drops some proposed levies amid anti-government protests

AFRICAN BUSINESS AND ECONOMYJune 25, 2024 at 2:37 PM UTC

TLDR

Kenya's National Assembly scraps controversial tax proposals, including levies on bread, mobile money transfers, banking services, and motor vehicles.
Ruling coalition lawmakers eliminate planned duties on imports of goods like diapers, sanitary pads, and rubber tires.
Eco levy on products such as batteries and mobile phones is retained, import declaration fee increased, and betting taxes raised.

Kenya’s National Assembly has scrapped a significant number of controversial tax proposals, despite opposition lawmakers refusing to participate in the vote, which had sparked street protests.

Proposed levies on bread, mobile money transfers, banking services, and motor vehicles were removed by ruling coalition lawmakers.

They also eliminated a planned duty on imports of various goods, including diapers, sanitary pads, and rubber tires. However, they retained an eco levy on products such as batteries and mobile phones. Lawmakers agreed to increase the import declaration fee and raise betting taxes.

Key Takeaways

President William Ruto’s efforts to improve government finances have propelled the Kenyan shilling to a 21.5% increase this year, making it the world’s best-performing currency. However, these measures have also sparked protests, with demonstrators calling for a shutdown of the economy, arguing that the policies are pushing more of the nation’s 54 million people into poverty. Activists are demanding that the administration focus on rooting out corruption and ending non-priority spending. Local broadcaster KTN reported that at least eight people were killed in the anti-government protests against the new taxes, which demonstrators argue are burdensome for a largely poor nation.

Kenya

Taxes

Levies

Economy

Protests

William Ruto

Fiscal Policy

IMF