By eastafrican gazette and Agencies
In the wake of the violent protests in Kenya, President William Ruto has opted to retract the disputed finance bill.
He declared that the bill, which included tax hikes, would be twithdrwan. The demonstrations, which have been on for over two weeks, resulted in multiple injuries and at least 23 deaths following clashes with security forces.
The Kenya Parliament and Uganda House were also set ablaze by enraged crowds.
Ruto, speaking to the press on June 26, 2024 during a national televised address, stated that he would not endorse the controversial finance bill.
He acknowledged that after reflecting on the ongoing discussions about the content of the Finance Bill 2024 and listening to the resounding rejection of the bill by the people of Kenya, he has decided not to sign it.
The government had previously eliminated certain tax increases, such as the proposed 16% VAT on bread, as well as taxes on vehicles, vegetable oil, and mobile money transfers.
However, these adjustments failed to quell the protests due to the rising cost of living.
In order to progress as a nation, Ruto highlighted the necessity of moving forward and looking towards the future.
He further stated his commitment to engaging with the young individuals at the forefront of the protests, seeking their ideas and proposals.
Demonstrators argue that the proposed bill would impose steep tax hikes on ordinary citizens and businesses already grappling with the burdensome cost of living.
There was also a planned increase in the tax on financial transactions as well as a new annual tax on vehicle ownership amounting to 2.5% of the value of the vehicle.
The bill proposed what they termed as an eco-levy on products that contribute to waste and harm the environment was another key provision of the bill that the government has now suggested amendments to.
Critics pointed out that it would lead to the increase in the cost of essential items such as sanitary pads.
They said many girls already unable to afford these products often miss school during their periods.
The government then said the levy would apply only to imported products.
The eco levy was also aimed at digital products, including mobile phones, cameras and recording equipment. But many Kenyans say they rely on these products, essential to the digital economy, for their livelihoods.
The bill introduces had also proposed a 16% tax on goods and services for the direct and exclusive use in the construction and equipping of specialised hospitals with a minimum bed capacity of 50.
Many Kenyans worry that this could mean higher healthcare costs.
It further proposes to increase the rate of import taxes from 2.5% to 3% of the value of the item, to be paid by the importer.
The rise comes just a year after the rate was reduced from 3.5% to 2.5%. Protesters say the changes would lead to higher prices for imported products.
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