The Kenyan government plans to reintroduce a slew of taxes, including a controversial “eco levy,” in an attempt to raise some $1.2 billion and plug the budget gap created by the withdrawal of a previous finance bill, France24 reports, citing AFP.
The move comes after President William Ruto faced widespread public backlash, culminating in deadly street protests, which forced the government to abandon the 2024 finance bill in June. The bill, aimed at raising $2.7 billion in taxes, was met with strong opposition from Kenyans who felt burdened by the proposed levies.
Finance Minister John Mbadi revealed on Sunday that the government is considering around 49 tax measures to generate the necessary revenue. These include the reinstatement of the “eco levy” on electronic items and plastic packaging, a measure intended to encourage environmentally responsible practices.
“If you are injurious to the environment then you must pay for helping make good the harm you have caused,” Mbadi explained.
The new tax measures, outlined in a tax amendment bill, are expected to come into effect by the end of September.
The previous finance bill’s scrapping resulted in credit rating downgrades by global agencies Moody’s and Fitch, who expressed concerns about Kenya’s ability to manage its $78 billion public debt. The government has implemented spending cuts and increased borrowing to address the budget shortfall, but the newly proposed tax measures are crucial to bolster government revenue.
Mbadi is one of four opposition figures who joined Ruto’s cabinet after the protests. The president vowed to create a more inclusive government in response to the demands of the demonstrators, many of whom were young Kenyans.
