Kenya’s government has scrapped several proposed taxes from this year’s contentious finance bill, including a 16% levy on bread, following widespread public outcry. The decision was announced by MPs amidst scenes of unrest in Nairobi, where police used tear gas and water cannons against protesting crowds. Dozens have been detained, prompting lawyers to rally for their release at the main police station.
Since taking office in 2022, President William Ruto has introduced a series of unpopular taxes aimed at reducing Kenya’s nearly $80 billion national debt. Critics argue these measures could stifle economic growth and lead to job losses. Some demonstrators in Nairobi have even called for Ruto’s resignation.
The reversal on the finance bill, disclosed by parliamentary finance committee chairman Kuria Kimani at a press briefing attended by President Ruto and coalition lawmakers, includes abandoning taxes on cooking oil, mobile money services, and motor vehicles. A proposed eco tax targeting environmentally harmful products like packaging and plastics has also been scaled back to apply only to imports.
Despite Ruto’s recent appeals for greater acceptance of taxation, acknowledging the challenge it poses, the government’s retreat is viewed as a response to public pressure and may undermine his administration’s agenda. The finance bill is set for further debate, with ongoing protests in Nairobi and condemnation of the police crackdown by human rights groups.