According to a government minister, the Kenyan government intends to raise approximately $1.2 billion by reintroducing some unpopular taxes included in a financial package that was canceled in response to fatal street protests.
President William Ruto warned of a revenue gap after dropping the controversial tax hikes in June, following a deadly day in Nairobi that saw police storm parliament and fire live rounds on demonstrators.
Finance Minister John Mbadi told private station Citizen TV on Sunday that the government was contemplating 49 tax measures to earn approximately 150 billion shillings ($1.2 billion).
These include the return of a “eco levy” on goods like as electronics and plastic packaging, which the government claims is intended to reduce waste.
“If you are injurious to the environment then you must pay for helping make good the harm you have caused,” Mbadi said.
Mbadi is one of four opposition figures that entered a restructured cabinet after Ruto promised to form a “broad-based” government to meet the protesters’ concerns, which are primarily led by young Gen-Z Kenyans.
After rejecting the 2024 budget plan, which would have raised approximately $2.7 billion in taxes, Ruto proposed government spending cuts and increased borrowing to meet the shortfall.
According to Citizen TV, the new measures outlined in the tax reform bill are anticipated to take effect by the end of September.
Following the repeal of the 2024 finance bill, global ratings firms Moody’s and Fitch downgraded Kenya’s credit rating, citing worries about the government’s capacity to service its $78 billion public debt.