The government of Kenya has announced its plan to reintroduce some tax measures that were previously removed after violent protests in June. Finance Minister John Mbadi revealed this decision during a televised interview, which has raised concerns about the potential for renewed unrest in a country already facing economic challenges and increasing living costs.
Mbadi explained that although the government intends to reinstate some tax measures, they will be modified to lessen the impact on the population. He stressed that these measures are necessary to generate funds for critical government expenses, including teachers’ salaries. However, the announcement has already caused unease among many Kenyans, especially those who took part in the protests earlier this year.
In June, protests broke out in response to a finance bill introduced by the government proposing new taxes and increases in existing ones, aiming to raise an additional 346 billion shillings (approximately $2.70 billion). Protesters argued that the bill would worsen the financial strain on a population already struggling with increasing living costs. The demonstrations, which included the storming of Parliament, forced President William Ruto to abandon the bill on June 26. Following the protests, Ruto also dismissed most of his cabinet in an attempt to calm the unrest and stabilize his administration.
Despite the government’s retreat, Kenya’s economic challenges have persisted. The decision to scrap the finance bill led to significant spending cuts and a widening fiscal deficit, adding to the country’s financial difficulties. Additionally, the International Monetary Fund (IMF) has been pressuring the Kenyan government to reduce its budget deficits as a condition for securing extra financing, further complicating the government’s efforts to balance its fiscal needs with the demands of a public already feeling the pinch of economic hardship.
In the interview, Mbadi acknowledged the challenging position the government finds itself in, caught between the need to address its financial challenges and the risk of provoking further unrest. He stated that the government plans to reintroduce an “eco-levy” on most goods as part of its strategy to raise the necessary revenue, but essential products such as sanitary pads will be exempt from the tax.
Mbadi assured that the tax measures would be designed to minimize their impact on everyday Kenyans and that the funds raised through these taxes are crucial for meeting emerging government expenditures. The revised tax measures are expected to be presented to Parliament by September 30.
The government’s plan to reintroduce the scrapped tax measures has elicited mixed reactions from the public. While some view the move as necessary to address the country’s financial challenges, others fear that it could lead to a resurgence of the protests that shook the nation in June. One prominent figure in the youth-led protest movement, Hanifa, expressed her frustration on social media after Mbadi’s announcement. “I was going to take a one-month break from social media… but it seems that there is no rest for me,” she wrote on X. “The struggle continues. @WilliamsRuto I dare you to bring back the finance bill.”
The potential for renewed protests is a serious concern for the government, which is already under significant pressure from both the public and international lenders. The IMF, in particular, has been urging Kenya to implement austerity measures as part of its efforts to secure additional funding. However, with the public already burdened by rising living costs, the government faces a difficult balancing act.
Mbadi, who was brought into the cabinet from the opposition benches as part of Ruto’s efforts to stabilize his government, initially ruled out further tax hikes during his first public appearance in his new role on August 4. However, the growing financial pressures have forced the government to reconsider its position. The new tax measures are expected to generate 150 billion shillings, according to Citizen TV. Despite some criticism from businesses operating in Kenya, Mbadi defended the levy, stating, “This country is not a dumping place. If you are injurious to the environment, then you must pay to make good what you have caused.”
