Why Kenyan youths are protesting against proposed tax on bread, cooking oil, others

Kenyan youths are currently staging a mass protest against the new Finance Bill, which proposes unpopular taxes on bread, cooking oil, and other essential commodities.

The Finance Bill, criticized for burdening people and businesses, has sparked protests among Kenyan youths, leading to widespread social unrest.

The Demonstrations, mostly peaceful but resulting in four death and many injuries and arrests, have drawn criticism from legal and human rights groups.

Despite the government dropping some controversial proposals, public anger remains high.

Many are now calling for the complete scrapping of the bill.

Initial tax imposition on bread, cooking oil, others

Initial provisions of the bill included a proposal to implement a 16% sales tax on bread and impose a 25% duty on cooking oil.

Additionally, the bill aimed to raise taxes on financial transactions and introduce a new annual vehicle ownership tax equivalent to 2.5% of the vehicle’s value.

These proposals sparked widespread public outrage, with critics arguing that such measures would disproportionately burden ordinary citizens already struggling with a high cost of living.

In response to the mounting pressure and public protests, the government retracted some of the more contentious aspects of the bill.

However, sentiments among the public remain tense, with demands growing louder for lawmakers to entirely scrap the bill and seek alternative ways to manage the country’s fiscal policies.

Other taxes the finance bill proposes

The finance bill introduces a 16% tax on goods and services used exclusively for constructing and equipping specialized hospitals with at least 50 beds.

Many Kenyans fear this could lead to higher costs for accessing critical health services like cancer treatment, diabetes care, and kidney dialysis.

In addition, the bill proposes raising import taxes from 2.5% to 3% of the item’s value, payable by importers at the port.

This adjustment follows a reduction from 3.5% to 2.5% just a year ago.

While aimed at increasing government revenue, the change could also result in higher prices for imported goods.

What the government saying

The finance bill is usually presented to parliament before the start of a financial year that runs from July to June, laying out the government’s fiscal plans.

the Kenyan government aims to raise $2.7 billion in additional taxes to reduce the budget deficit and state borrowing.

Kenya’s public debt stands at 68% of GDP, higher than the 55% of GDP recommended by the World Bank and the International Monetary Fund.

President Ruto, while withdrawing some of the most controversial measures, has acknowledged the protests and promised to hold talks to address the concerns of the youth who are at the forefront of the demonstrations.

However, his efforts have done little to calm tensions.

On his part, the chairman of the parliamentary finance committee, Kuria Kimani, has dismissed claims that “the bill introduces taxation on cancer patients” terming them in parliament as “falsehoods to emotionalise the public”.

Ongoing protest at Kenyan parliament

At the time of this reporting, part of Kenya’s parliament is ablaze as protesters opposed to the new tax bill breached the complex.

Gunshots were held in Nairobi, the Country’s capital, resulting in at least one fatality and dozens of injuries.

According to the BBC, bodies were seen lying on the streets and observed police deploying tear gas against demonstrators.

Some Members of Parliament reportedly sought refuge in the parliament’s basement following the passage of a finance bill introducing fresh taxes.