Kenya’s government has scrapped some proposed taxes in this year’s controversial finance bill, including a 16% levy on bread, following a public outcry.
The announcement by MPs came amid violent clashes in the capital, Nairobi, where police fired tear gas and used water cannons to disperse angry protesters.
Dozens of people have been arrested, and lawyers joined chanting crowds at the main police station, demanding the release of detainees.
Since taking office in 2022, President William Ruto has introduced several unpopular taxes aimed at reducing the national debt of nearly $80 billion (£63 billion).
However, critics argue that the latest proposals could stifle economic growth and lead to job losses.
Some protesters called for the president’s resignation, chanting, “Ruto must go! Ruto must go!”
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Kuria Kimani, chairman of the parliamentary finance committee, announced the U-turn at a press briefing attended by President Ruto and other ruling coalition lawmakers.
He explained that the decision to drop some of the tax proposals was made to protect Kenyans from the rising cost of living.
Other scrapped taxes include those on cooking oil, mobile money services, and motor vehicles, which critics argued would also impact the insurance industry.
Kimani also announced a reversal on a proposed eco tax targeting products with negative environmental impacts, such as packaging, plastics, and tyres.
Initially, this tax faced backlash for potentially raising the cost of essential goods like nappies, sanitary towels, computers, and mobile phones. The levy will now only apply to imported goods.
President Ruto remained silent during the briefing.
The move, seen as yielding to public pressure, is a setback for his administration.
He recently urged Kenyans to accept higher taxes, arguing they were undertaxed but acknowledged the challenge.
In the past two years, taxes on salaries, fuel, and gross sales have increased.
Additionally, a 1.5% housing levy on workers’ monthly pay for affordable housing construction has been introduced, and a higher health insurance levy is forthcoming.
Lawmakers are set to discuss the finance bill on Wednesday, prompting ongoing protests in the capital.
Several people accused of organizing the demonstrations have been arrested.
(BBC)
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