Kenya’s protest movement forces a U-turn on tax hikes

21 06 2024 | 18:08Martin K.N Siele

Kenyan lawmakers scrapped some unpopular tax hikes in a controversial finance bill after protesters spearheaded widespread criticism of the plans.

Demonstrators took to the streets on Tuesday, prompting the police to make dozens of arrests and fire tear gas.

The finance bill, first tabled in May, proposed removing VAT exemptions on bread, tax hikes on mobile money transfers, and a new annual tax on motor vehicles. It prompted widespread criticism from the public.

President William Ruto chaired a parliamentary committee meeting early on Tuesday to discuss the bill. Acknowledging widespread discontent, lawmakers announced after the meeting that several plans would be dropped, including the annual motor vehicle tax, VAT on bread and higher taxes on mobile money transfers.

“We have adjusted the document accordingly,” Ruto said of the changes in post on X, adding that the move followed a “robust public engagement” on the bill.

The partial climbdown follows a week in which campaigners spammed lawmakers with thousands of phone calls and messages urging them to reject the bill. They also targeted senior International Monetary Fund officials, due to the body’s support for the bill.