Kenya’s government has dropped some proposed taxes from this year’s controversial finance bill, including a 16% levy on bread, following public outcry.
The announcement by MPs came as police used tear gas and water cannons to disperse angry protesters in Nairobi, the capital.
Dozens of people were arrested, and earlier, lawyers joined chanting crowds at the city’s main police station to demand the release of detainees.
Since taking office in 2022, President William Ruto has introduced several new and unpopular taxes to address the country’s nearly $80bn (£63bn) national debt.
However, critics argue that the latest proposals could stifle economic growth and result in job losses.
Some protesters marching through the capital called for the president’s resignation, chanting, “Ruto must go! Ruto must go!”
The reversal of the new finance bill was announced by Kuria Kimani, chairman of the parliamentary finance committee, during a press briefing attended by President Ruto and other lawmakers in the ruling coalition.
Kimani stated that the finance team had been gathering public feedback on the bill, and the decision to drop some of the proposals was made to shield Kenyans from the rising cost of living.
The scrapped taxes include those on cooking oil, mobile money services, and motor vehicles, which critics argued would negatively impact the insurance industry.
Kimani also announced the reversal of a proposed eco tax targeting products with a negative environmental impact, such as packaging, plastics, and tyres. This tax faced backlash for potentially increasing the cost of essential goods like nappies, sanitary towels, computers, and mobile phones. The levy will now only apply to imported goods.
President Ruto remained silent during the briefing. The move, seen as yielding to public pressure, represents a setback for his government. Recently, Ruto urged Kenyans to accept higher taxation, claiming they were undertaxed but acknowledged the difficulty of this acceptance.
Over the past two years, taxes on salaries, fuel, and gross sales have increased. Additionally, a housing levy of 1.5% of a worker’s monthly pay has been introduced to fund the construction of affordable housing, and a higher health insurance levy is set to take effect soon.
Lawmakers are scheduled to discuss the finance bill on Wednesday, prompting protests in the capital. Several people accused of organizing the demonstrations have been arrested, and rights groups have condemned the police’s response.
“I am very angry and I’m fighting for my future,” one protester, named Wangari, told the AFP news agency on Tuesday.
“I am still a young adult and I want to build myself up in this country. And with such taxes, with such exploitation, I don’t see how we can build a life.”
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