The government of Kenya plans to generate approximately $1.2 billion by reimposing certain unpopular taxes outlined in a finance bill that was eliminated due to violent street demonstrations, as stated by a government official.
President William Ruto had cautioned about a funding gap after he chose to withdraw the controversial tax increases in June following a violent protest in Nairobi that involved the storming of parliament and police using live ammunition against protesters.
Finance Minister John Mbadi stated in an interview on Sunday that the government is contemplating approximately 49 tax measures in an attempt to raise around 150 billion shillings ($1.2 billion).
These measures include the revival of an “eco levy” on electronic products and plastic packaging, which the government asserts is aimed at reducing waste.
“If you are injurious to the environment, then you must pay for helping make good the harm you have caused,” Mbadi said.
Ruto scrapped the 2024 finance bill, which aimed to generate approximately $2.7 billion in taxes, and instead announced cuts in government spending and an increase in borrowing to cover the deficit.
According to Citizen TV, the new measures outlined in the tax amendment bill are expected to be implemented by the end of September.
The elimination of the 2024 finance bill led global credit rating agencies Moody’s and Fitch to downgrade Kenya’s credit rating due to concerns about the government’s ability to manage its $78 billion public debt.
