Why Kenyans Are Opposing a New Finance Bill by Their Government

The tax bill is in line with the government’s Medium-Term Revenue Strategy, which aims to boost domestic revenues. However, many Kenyans believe this bill, if passed, will worsen the cost of living crisis, citing the increased tax measures from the Finance Bill, 2023.

The Finance Bill, 2024, introduces dozens of new taxes and increases several existing ones. It proposes an increase in excise duty on financial services from 15 percent to 20 percent, including money transfers offered by banks, money transfer agencies and cellular providers. The bill will impose VAT on staple items, including a 16 percent charge that will increase the price of bread by at least KSh10 (less than 10 cents), as well as a 25 percent charge on crude and refined vegetable oils, with the latter meaning Kenyans will have to pay KSh160 ($1.23) per liter of edible oil.

The bill will introduce an Eco Levy of KSh150 ($1.16) per kilogram (2.2 pounds) on products packaged with plastic. It will also include an annual 2.5 percent Motor Vehicle Tax, which could be as high as KSh10,000 ($77) depending on the vehicle. According to Kiptoo, the national treasury is looking to generate KSh58 billion (about $447 million). Looking to raise over KSh300 billion ($2.3 billion) for the 2024/2025 fiscal year, Kenya’s treasury has an eye on making sure the country services its ballooning debt without defaulting and paying charges.

Widespread negative reactions have trailed the proposed bill, with many Kenyans of the opinion that the President William Ruto-led government is only interested in milking citizens dry while government officials live large. Just recently, Ruto came under fire after claiming friends discounted his rented private jet trip to the U.S, although reports claim it cost taxpayers over a million dollars.

In lieu of physical protests, citizens have taken to calling their parliamentary representatives demanding that they vote against the bill. Several MPs have already declared their readiness to do so.

“For All You Kenyans, and Friends Of Kenya, Inundating My Space, Cell, Twitter and Other Media Urging Me To Reject The Bill, Rest Easy, My Vote Is a No! And, Like It’s [sic] 2023 Predecessors, I’m Happy To Demonstrate Its Illegalities In Court, If Bunge Won’t Listen,” MP Otiende Amollowrote in an X post today.

According to X user @carltonkitheka1, the bill could easily be voted down due to the opposition’s numerical advantage in parliament. “Did you know (opposition coalition) Azimio has 167 MPs in Parliament compared to (ruling coalition) Kenya Kwanza’s 155 ?? They could easily reject this Finance bill if they wanted to,” they wrote in an X post.

Several Kenyans have also scapegoated the Kenyan International Monetary Fund (IMF), who, in support of the bill, stated that it’s necessary to fix stagnant government revenue. “The IMF has put an economic rope around our necks and President Ruto and members of parliament happily cheer them on! Puppets without identity who simply say ‘yes sir,’” popular gospel artist and activist Reuben Kigamewrote in an X post.

Currently, the hashtags “Reject Finance Bill” and “Reject Finance Bill 2024” are helping to drive discussions and online activism, as Kenyans reject the bill that will go as far as levying unemployed citizens from age 25, KSh300 ($2.31) every month.