Kenya’s new planned tax hikes spark anger » Capital News

NAIROBI, Kenya, May 13 – The Kenyan government is planning to introduce new and enhanced taxes in the latest proposed law which has triggered widespread criticism in the country.

The price of bread is set to increase after the national treasury proposed to remove the key consumer staple from the list of zero-rated supplies, a value added tax (VAT) exemption list.

The cost of mobile money transfers, airtime and data is also set to go up as the government seeks to raise an additional $2.4bn (£2bn) in taxes, in the financial year that starts in July.

In the proposals carried in the 2024 Finance Bill published on Saturday, the government is also introducing a new motor vehicle tax that will see motorists pay up to $750 annually to keep their vehicles on the road.

The new tax is part of a series of financial measures introduced by President William Ruto’s government to fund its extensive infrastructure and social programmes.

The move has generated sharp criticism with politicians and human rights activists terming it “burdening”.

The opposition has threatened to mobilise protests across the country if the government goes ahead with the new tax measures.

Last year, the government introduced several taxes, including a controversial housing levy, despite widespread objection from some Kenyans.

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