Kenya’s government plans to raise about $1.2 billion by restoring some unpopular taxes contained in a bill that was scrapped in the face of deadly street protests, a government minister said.
President William Ruto had warned of a funding shortfall after he decided in June to scrap controversial tax hikes following a bloody day in Nairobi that saw parliament stormed and police fire live bullets at protesters.
Finance Minister John Bundy told private station Citizen TV on Sunday that the government is considering about 49 tax measures to try to raise about 150 billion shillings ($1.2 billion).
These include the reintroduction of a “green levy” on goods such as electronics as well as plastic packaging, which the government says is aimed at reducing waste.
“If you damage the environment, then you have to pay to help repair the damage you caused,” Mbadi said.
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Bundy is one of four opposition stalwarts to join a revamped cabinet after Ruto pledged to form a “broad-based” government to try to address the concerns of protesters, led mainly by young Gen-Z Kenyans.
After scrapping the 2024 budget bill, which would have raised about $2.7 billion in taxes, Ruto announced government spending cuts and increased borrowing to cover the gap.
Citizen TV reported that the new measures included in the tax amendment bill are expected to take effect by the end of September.
The scrapping of the 2024 budget bill led global rating agencies Moody’s and Fitch to downgrade Kenya’s credit rating over concerns about the government’s ability to service its $78 billion public debt.
Source: AFP