By John Ikani
Anger and criticism are trailing plans unveiled by Kenya’s government to introduce new taxes and raise existing ones.
The move, aimed at generating an additional $2.4 billion for the upcoming fiscal year, has Kenyans bracing for a potential rise in the cost of living.
One of the most concerning proposals involves removing bread from the list of products exempt from value-added tax (VAT).
This could lead to a significant increase in the price of this essential staple food.
The pain won’t stop there. Kenyans who rely on mobile money transfers, airtime, and data can also expect to pay more under the proposed tax hikes.
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Further burdening motorists, the 2024 Finance Bill introduces a new annual vehicle tax, potentially costing drivers up to $750 to keep their cars on the road.
President William Ruto’s administration justifies these measures as crucial for funding ambitious infrastructure projects and social programs.
However, the tax hikes have been met with fierce opposition. Politicians and human rights activists have slammed the proposals as “burdensome” for ordinary Kenyans.
The opposition has gone a step further, threatening nationwide protests if the government pushes through with the tax increases.
This follows a similar public outcry last year when the government defied objections and implemented a controversial housing levy.
The Kenyan public clearly feels squeezed, and the coming months could witness a heated debate over the government’s proposed tax strategy.
