The Kenyan government is planning to generate approximately $1.2 billion by reinstating some unpopular taxes from a scrapped finance bill, according to Finance Minister John Mbadi.
The original tax hikes were dropped in June after violent protests in Nairobi, where demonstrators stormed parliament and police responded with live fire.
President William Ruto had warned of a budget shortfall following the decision to abandon the tax increases.
Speaking on Citizen TV, Mbadi mentioned that the government is considering around 49 tax measures to raise the necessary funds, including the reintroduction of an “eco levy” on items like electronics and plastic packaging to reduce environmental waste.
Mbadi, one of four opposition figures who joined Ruto’s revamped cabinet, emphasized the need for those harming the environment to contribute to its restoration.
Following the scrapping of the 2024 finance bill, which would have raised $2.7 billion, Ruto announced spending cuts and increased borrowing to fill the budget gap.
The new tax measures are expected to be implemented by the end of September.
The cancellation of the original bill led global ratings agencies Moody’s and Fitch to downgrade Kenya’s credit rating, citing concerns over the country’s ability to manage its $78 billion public debt.
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