Kenya to reintroduce tax measures with key exemptions

President William Ruto

 

Kenya government is set to reintroduce tax measures to parliament, aiming to generate an additional KSh150bn ($1.2bn) in revenue. This move comes after the original legislation was withdrawn in June following widespread protests, according to a report by Citizen TV, which cited Finance Minister John Mbadi.

The revised tax proposals include an eco-levy on most goods, which was one of the contentious measures that sparked public outcry earlier this year. However, in an effort to address some of the concerns that led to the protests, the government has decided to exempt sensitive products like sanitary pads from the levy, as confirmed by Minister Mbadi in an interview with the TV station.

The decision to revisit these tax measures is driven by the government’s need to meet increasing demands for public expenditure, Mbadi explained. The additional revenue is expected to help the government address various financial challenges and fulfil its obligations.

The previous attempt to implement these taxes faced significant resistance, leading to deadly protests across the country. In response to public pressure, the government temporarily pulled the legislation. Now, with adjustments and exemptions in place, the government hopes to secure the necessary parliamentary approval to move forward with the revised tax proposals.

As Kenya continues to grapple with economic pressures, the success of these reintroduced measures will be crucial in stabilizing the country’s financial outlook and ensuring the government can meet its fiscal responsibilities.

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