Kenyans are protesting against a new finance law that introduces unpopular tax proposals that have sparked anger across the country.
The controversial bill, which contains provisions seen as an additional burden on ordinary citizens and businesses, has sparked enormous outrage among a public already burdened by the high cost of living.
It has sparked youth-led protests that, while largely peaceful, have resulted in at least one death, hundreds of injuries and arrests – all of which have been condemned by lawyers and human rights groups.
The government has dropped a number of controversial proposals but has done little to assuage public anger.
Many now want the entire bill to be scrapped.
There have been calls for protests on social media and demands that lawmakers oppose the tax increases.
What were some of the original plans that caused outrage?
Amendments to the bill appear to be passing, but some of the controversial provisions initially put forward include a plan to implement a 16% sales tax on bread and a 25% excise tax on cooking oil.
There was also a planned increase in the financial transaction tax, as well as a new annual tax on vehicle ownership amounting to 2.5% of the vehicle’s value.
The government said it was dropping these measures due to public outcry.
The eco-levy, described as a levy on products that contribute to e-waste and harm the environment, was another key provision of the bill to which the government has now proposed changes.
Critics pointed out that this would lead to a rise in the cost of essential items such as sanitary napkins, which was seen as insensitive as there are many girls who, unable to afford these products, often miss school during their periods.
Babies’ diapers would also be affected.
After an outcry, the government said the levy would only apply to imported products, arguing it would boost the growth of local industries.
The other main target of this eco-tax is digital products, including mobile phones, cameras and recording equipment, as well as TV and radio equipment. A rise in the cost of these products is seen as detrimental to the growth of the digital economy, on which many Kenyans depend for their livelihoods.
Which measures remain untouched?
The financing bill introduces a 16% tax on goods and services for direct and exclusive use in the construction and equipment of specialized hospitals with a minimum capacity of 50 beds.
Many Kenyans feared this could mean higher costs for accessing crucial health care services for cancer, diabetes, kidney dialysis or other chronic diseases.
Parliamentary Finance Committee chairman Kuria Kimani has dismissed claims that “the bill introduces tax on cancer patients,” calling them “falsehoods to emotionalize the public” in parliament.
The bill proposes to increase the rate of import taxes from 2.5% to 3% of the value of the item, to be paid by the importer at the port.
The increase comes just a year after the rate was reduced from 3.5% to 2.5%. The change is expected to generate additional revenue for the government, but could also lead to higher prices for imported products.
What has been the government’s response?
In addition to withdrawing some of the most controversial measures, President William Ruto has acknowledged the protests and promised to hold talks to address the concerns of the youth at the forefront of the demonstrations.
But that has done little to calm tensions.
Why is this not seen as good enough?
Despite the abolition of some of the proposed measures, others remain, including the higher import tax and an increase in the road maintenance charge levied on fuel.
But this is also about a feeling of anger that has been simmering for a long time.
Some irritated Kenyans, who feel overburdened, believe the government has not taken their concerns into account.
Mr Ruto has argued that Kenya has a relatively low tax rate compared to some other African countries, but this has not convinced many.
Daily conversations, already dominated by the pain of taxation, have now reached a fever pitch.
This year’s finance bill was not the first unpopular bill under Ruto.
Last year’s equivalent, which also sparked protests, introduced a slew of unpopular taxes that the current plan adds to, exacerbating the pain.
Angry protesters would prefer the government to cut spending, just as many Kenyans have had to do during lean economic times, and tackle waste and corruption.
The government has said in the past that it is pursuing this, but has failed to convince many that enough is being done.
What happens now?
On Tuesday, lawmakers will consider and vote in favor of the government’s amendments to parts of the bill, which was approved by parliament last week.
The government coalition has enough members in parliament to pass the amended bill. Once passed, the president must sign it into law within fourteen days or send it back to parliament with a proposal for further changes.
Although unlikely, the government could also opt for other measures to reduce the pressure, including delaying the law.
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