Zoe Mckey, Staff writer
Kenyan President William Ruto has faced significant backlash over the Finance Bill 2024, which proposed various tax increases, including a hike in VAT on fuel from 8% to 16% and new levies on motor vehicles, vegetable oil, and mobile money transfers. The bill aimed to generate $2.7 billion to help manage Kenya’s substantial public debt, but it met with widespread public opposition. Protests erupted across the country, with demonstrators criticizing the bill for exacerbating the cost of living and disproportionately affecting the working class and rural populations. In response to the public outcry and protests, the government withdrew some of the most unpopular tax provisions, including a proposed 16% VAT on bread.
Despite these amendments, the bill remains contentious. Critics argue that President Ruto’s administration has reneged on his election promises to uplift the poor and improve living conditions. The opposition, led by Raila Odinga, has been vocal in its condemnation, accusing the government of imposing harsh economic measures dictated by the International Monetary Fund (IMF). Meanwhile, the government insists that the bill is essential for fiscal consolidation and reducing dependency on foreign debt.
