Kenya’s new planned tax hikes spark anger

By Moses Muli

Published: May 13,2024 12:18 PM

Plans to introduce new taxes and increase existing ones have triggered widespread criticism in Kenya.

The price of bread is set to climb after the national treasury proposed removing the staple product from a value added tax (VAT) exemption list.

The costs of mobile money transfers, airtime and data are also set to go up as the government seeks to raise an additional $2.4bn (£2bn) in taxes, in the financial year that starts in July.

In the 2024 Finance Bill, published on Saturday, the government also proposed a new motor vehicle tax that will see drivers pay up to $750 (£600) annually to keep their vehicles on the road.

The tax hikes are part of a series of financial measures introduced by President William Ruto’s government in order to fund its extensive infrastructure and social programmes.

The move has generated sharp criticism, with politicians and human rights activists calling the taxes “burdening”.

The opposition has threatened to mobilize protests across the country if the government goes ahead with the new tax measures.

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