The Kenyan government is moving forward with plans to raise approximately $1.2 billion by reinstating a series of unpopular taxes that were previously abandoned in the wake of deadly street protests.
Finance Minister John Mbadi announced the decision during an interview with Citizen TV on Sunday, revealing that the government is considering around 49 tax measures to generate the targeted 150 billion shillings ($1.2 billion).
Among the proposed measures is the reintroduction of an “eco levy” on items such as electronic goods and plastic packaging, aimed at reducing environmental waste. “If you are injurious to the environment, then you must pay for helping to mitigate the harm you have caused,” Mbadi explained.
These tax measures come after President William Ruto, faced with a severe funding shortfall, scrapped the 2024 finance bill in June. The bill, which was expected to generate $2.7 billion, was abandoned following violent protests in Nairobi that saw the storming of parliament and police using live ammunition against demonstrators.
Ruto, who had warned of the fiscal gap, responded by announcing government spending cuts and increasing borrowing to address the deficit. The protests were largely driven by young Kenyans, particularly from Generation Z, expressing their discontent with the proposed tax hikes.
The new tax amendment bill is expected to be implemented by the end of September, according to Citizen TV. The scrapping of the original finance bill led to global ratings agencies Moody’s and Fitch downgrading Kenya’s credit rating due to concerns about the government’s ability to manage its $78 billion public debt.
