Kenya’s finance ministry is working to reinstate some of the tax measures from the 2024 Finance Bill, which were previously withdrawn following deadly protests that left over 60 people dead and resulted in the dismissal of President William Ruto’s entire cabinet. The original bill was intended to generate 344 billion shillings ($2.7 billion) in additional revenue, but faced significant opposition.

Important points:

• Public reaction: The original tax measures, which included an increase in taxes on essential goods such as bread and diapers, were rejected amid fierce protests.
• Government response: The new finance minister, John Mbadi, plans to revise these measures and reintroduce them through alternative proposals, placing great emphasis on extensive public consultations to address previous criticisms.
• Legal challenges: The bill was challenged in court and declared unconstitutional, which led to its withdrawal.
• Financial pressure: Given Kenya’s high debt burden and growing fiscal deficit, the government is seeking to increase tax revenues and manage the budget more efficiently.
• Proposed changes: Possible measures include extending a tax amnesty, addressing VAT refund issues and changing the tax status of critical goods to balance revenue needs and public impact.

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