Kenya Withdraws Key Tax Hikes Following Public Protests

In Kenya, the government has decided to retract most of the newly proposed tax hikes following public protests that erupted near the Parliament. Demonstrators voiced strong opposition against the draft budget, which included tax increases on essential goods and services, arguing that these measures would further strain their financial capacities. The protests, which saw police deploying tear gas and making arrests, prompted the government to reconsider. As a result, certain tax proposals, including a 16% VAT on bread and taxes on mobile payments and vegetable oil, were withdrawn. This decision comes as the government aims to ease the cost of living while still seeking ways to navigate through an economically challenging period. The revised budget is set to be debated and potentially passed before the end of June.

  • Kenya’s government retracted proposed tax hikes in response to public protests near Parliament.
  • Protesters argued the tax increases on essential goods and services would exacerbate financial burdens.
  • Police used tear gas and made arrests amid demonstrations against the draft budget.
  • The proposed 16% VAT on bread was among the taxes scrapped following the protests.
  • Taxes on mobile payments and vegetable oil were also removed from the draft budget.
  • The government’s revisions aim to protect Kenyans from the increased cost of living while addressing economic challenges.
  • The revised budget is expected to be debated and passed before June 30.

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