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Kenyan police fired tear gas and arrested at least a dozen demonstrators on Tuesday as hundreds of people gathered near parliament to protest tax hikes. The East African economic powerhouse has struggled with a cost-of-living crisis, which critics say will only worsen under the levies laid out in a bill due to be debated in parliament on Tuesday afternoon.
Kenya’s government on Tuesday walked back plans to impose multiple tax hikes, the presidency said, announcing amendments to the controversial bill.The Finance Bill has been amended to remove the proposed 16 per cent VAT on bread, transportation of sugar, financial services, foreign exchange transactions as well as the 2.5 per cent Motor Vehicle Tax, the presidency said in a statement.
The new taxes contained in the finance bill were expected to help the cash-strapped administration generate some 346.7 billion shillings ($2.7 billion) to boost revenue and cut government borrowing. In addition to the proposed motor vehicle tax, the amendments will also do away with increased taxes on financial and mobile services. Parliament must pass the final version of the bill before June 30.
Tax hikes last year led to several opposition protests which sometimes degenerated into deadly street clashes between police and demonstrators. Hundreds of black-clad protesters marched toward parliament in Nairobi’s business district but were kept back by police officers lobbing tear gas at the crowds.
Dubbed “Occupy Parliament,” news of the protest was shared online after an activist leaked MPs’ contact details, urging people to bombard them with calls and messages to shoot down a bill proposing the new hikes. The Kenya Human Rights Commission urged police to “stop the arrests.
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Ruto came to power in 2022 on a promise to revive the economy and put money in the pockets of the downtrodden, but his policies have sparked widespread discontent.
Last year’s tax hikes led to opposition protests, sometimes degenerating into deadly street clashes between police and demonstrators.While Kenya is among the most dynamic economies in East Africa, roughly a third of the 51.5 million population lives in poverty.
