Kenya’s newly appointed Finance Minister, John Mbadi, has announced that some of the proposed taxes that had sparked deadly protests earlier this year will be reintroduced through a tax amendment bill. The bill will include dozens of measures, including a tax on goods deemed not environmentally friendly. The finance minister defended the proposal, stating, “This country is not a dumping place.” However, the move has drawn strong criticism from Kenyans who had protested against the tax increase.
The tax on environmentally unfriendly goods had sparked controversy earlier this year, with critics arguing that it would lead to an increase in the cost of essential goods such as sanitary towels and diapers. The youth-led protest movement has vowed to continue demonstrations across Kenya, with over 50 people having died since the protests began in mid-June. Human rights groups have accused the police of brutality in dispersing the protests.
Opposition lawmakers have also condemned the plan to reintroduce the tax proposals, with one leader accusing the finance minister of “double speak.” The finance minister had earlier stated that there were no plans to increase taxes. Kenya’s President, William Ruto, had withdrawn the earlier finance bill, but still defended the new taxes and warned of consequences if the protesters continued to disrupt the economy.
Taxes Reappear Amid Debt Crisis and Protests in Kenya (Image via Getty)
The International Monetary Fund (IMF), which supports an economic reform program in Kenya, had earlier suggested some of the controversial tax changes. The IMF expressed confidence that a balanced path forward would be found. However, protesters continue to call for the president’s resignation, and Mr. Ruto has refused to step down. The country’s struggle to pay off debts to lenders, including the World Bank, International Monetary Fund, and China, has led to the reintroduction of the taxes.
As the country continues to grapple with the economic crisis and the repercussions of the protests, the reintroduction of the taxes is likely to further escalate tensions. The protesters’ demands for economic reform and better governance remain unchanged, and the government will need to find a way to address these concerns if it is to restore stability and peace to the country.
